CIEX No. 26/2023: Adjustment to the Methodology for Calculating the Reference Interest Rate

EXTERNAL CIRCULAR La Paz, June 30, 2023 CIEX No. 26/2023 FROM: GENERAL MANAGEMENT FINANCIAL ENTITIES MANAGEMENT TO: FINANCIAL INTERMEDIATION ENTITIES SUBJECT: ADJUSTMENT TO THE METHODOLOGY FOR CALCULATING THE REFERENCE INTEREST RATE

Gentlemen: The Central Bank of Bolivia (BCB) notifies Financial Intermediation Entities (EIF) that the BCB Board of Directors approved on June 27, 2023, the adjustment to the methodology for calculating the Reference Interest Rate (TRe).

The TRe in national currency (TReMN) will be calculated as follows:

1. From the aggregated monthly income statement of multiple banks, including the public bank and SME banks, the charges for obligations with the public and public enterprises for demand, savings, and term deposits for operations in all monetary denominations are summed (accounts 411.01 to 411.05 and 417.01 to 417.03).
2. The monthly data for the aforementioned charges is obtained by the difference between the accumulated monthly income statements of the current month and the previous one, with the exception of the month of January, for which the data is taken without performing any subtraction.
3. The previous calculation is multiplied by 360 and divided by the number of calendar days in the month of the income statement.
4. The result is divided by the sum of the balance sheet balances of the multiple banks, including the public bank and SME banks, for the same month, of the obligations with the public and public enterprises for demand, savings, and term deposits for operations in all monetary denominations (accounts 211.00, 212.00, 213.00, 215.00, 281.00, 282.00, 283.00, and 285.00).

The TRe in the remaining monetary denominations is calculated as the weighted average effective passive interest rate of fixed-term deposits (DPF), agreed upon in the corresponding monetary denomination for all terms by multiple banks, including the public bank and SME banks, for the calendar month.

The TRe in all monetary denominations will be valid for one calendar month, with validity for the month following the receipt of income statements and balance sheets for the TReMN and of the information on operations and interest rates of new DPF for the TRe in the remaining denominations.

EIF that are in processes of intervention, resolution procedures, and/or liquidation are excluded from the calculation of the TRe in all its denominations starting from the monthly publication of the TRe of July 2023.

The adjustment will enter into force as of July 1, 2023.

External Circular SGDB No. 024/2018 of June 6, 2018, is hereby repealed.

Sincerely.

DIGITALLY SIGNED DOCUMENT Rolando Jorge Olmos Alcalá MANAGER OF FINANCIAL ENTITIES Rubén Gonzalo Ticona Chique GENERAL MANAGER Validate digital signatures at validar.firmadigital.bo RGTCH/RJOA/mmvt/ceol