Regulatory Alerts2020-07-14 | CIEX N° 33/2020Added · Updated
CIEX No. 33/2020: Constitution of the CAPROSEN Fund
The Central Bank of Bolivia establishes the CAPROSEN Fund to guarantee liquidity loans in national currency to Financial Intermediation Entities (EIFs), funded by resources released from reduced legal reserve requirements. EIFs may request these liquidity loans starting July 7, 2020, with their participation in the fund proportional to their share of the liberated resources. Monthly monitoring of loan portfolio growth begins with sworn declarations submitted by the end of August 2020.
EXTERNAL CIRCULAR GENERAL PROCESSING BLANKED La Paz, July 7, 2020 CIEX No. 33/2020 FROM: GENERAL MANAGEMENT FINANCIAL ENTITIES MANAGEMENT TO: FINANCIAL INTERMEDIATION ENTITIES SUBJECT: CONSTITUTION OF THE CAPROSEN FUND
Ladies and Gentlemen:
The Central Bank of Bolivia (BOB) informs Financial Intermediation Entities (EIFs) that on June 29, 2020, through Board Resolution No. 60/2020, the BOB approved the reduction of Legal Reserve rates for Titles and in Cash in national and foreign currency. This modification in the structure of legal reserve rates releases resources, which are used to constitute the "Fund for Loans in National Currency for the Acquisition of National Products and Payment of Services of National Origin (CAPROSEN)". The participation of each EIF in the CAPROSEN Fund is equal to its participation in the released resources.
The resources of the CAPROSEN Fund will serve as collateral for the liquidity loans in national currency that each EIF requests from the BOB under the conditions established in BOB Board Resolution No. 60/2020. Monthly control of the growth of the portfolio granted by the EIFs will begin from the sworn declarations presented with a code of end of month of August 2020.
EIFs may submit requests for liquidity loans with collateral from the CAPROSEN Fund starting today, Tuesday, July 7, 2020.
Sincerely,
JOAQUIN ROLANDO LOPEZ BAKOVIC MANAGER OF FINANCIAL ENTITIES CENTRAL BANK OF BOLIVIA
• ABEL SANJINES ALVAREZ GENERAL MANAGER a.i. CENTRAL BANK OF BOLIVIA
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