CIEX No. 51/2020: Requirements to Participate in Open Market Operations and Securities Operations for Fiscal Policy Purposes via the Electronic Auction System

Calle Ayacucho esquina Mercado - Teléfono: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz – Bolivia EXTERNAL CIRCULAR La Paz, October 8, 2020 CIEX No. 51/2020 FROM: GENERAL MANAGEMENT MONETARY OPERATIONS DEPARTMENT TO: ENTITIES THAT CONSTITUTE AND PARTICIPATE IN THE FINANCIAL SYSTEM, AUTHORIZED FOR THEIR OPERATION AND/OR REGULATED BY ASFI OR APS SUBJECT: REQUIREMENTS TO PARTICIPATE IN OPEN MARKET OPERATIONS AND SECURITIES OPERATIONS FOR FISCAL POLICY PURPOSES THROUGH THE ELECTRONIC AUCTION SYSTEM (SSE)

Ladies and Gentlemen: The Central Bank of Bolivia (BCB) communicates to entities that hold an operating license and/or are regulated by the Financial System Supervision Authority (ASFI), the Pension and Insurance Supervision and Control Authority (APS), or another competent authority, the requirements to participate in operations with the BCB under auction and money market mechanisms.

I. Direct Participants and Requirements Direct participants are entities that have BCB authorization to carry out public securities purchase operations in the primary market and repos with public securities and securities from private issuers, under auction and money market mechanisms. These may act as intermediaries for other participants.

Requirements for direct participants • Signature of the Electronic Auction and Repo Securities Contract, for which a written request must be sent to the Monetary Operations Department of the BCB, attaching the following documents:

• Simple copy of the Entity's Deed of Incorporation and the Deed of the last Public Deed of Modification, if applicable.

Calle Ayacucho esquina Mercado - Teléfono: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz – Bolivia

• Legalized copy of the Power of Attorney Deed of Legal Representation of the person(s) who will sign the contract.
• Simple copy of the Identity Card of the person(s) who will sign the contract.
• Simple copy of the electronic certification of registration in the National Taxpayer Registry with its respective Tax Identification Number (NIT).
• Simple copy of the Commercial Registration Certificate or Update of Registration, as applicable, issued by the Commercial Registry granted to FUNDEMPRESA, in the case of commercial companies.
• Simple copy of the Administrative Resolution issued by ASFI or APS granting the Operating License. If direct participants have the signed Electronic Auction and Repo Securities Contract, the submission of the aforementioned documentation will not be necessary.

II. Operations with Public Securities Direct Participants: Entities that constitute and participate in the financial system, authorized for their operation and/or regulated by ASFI or APS, unless restrictions are imposed by the regulations issued by the corresponding regulatory entities.

Indirect Participants (third parties) and requirements: These consist of non-financial legal entities, investment funds, fiduciary financial entities of trusts, and natural persons. Indirect participants operate with the BCB through direct participants, through whom they can carry out public securities purchase operations in the primary market and/or repos with public securities, under auction and money market mechanisms.

Calle Ayacucho esquina Mercado - Teléfono: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz – Bolivia The direct participant must request in writing to the Monetary Operations Department of the BCB to include as their third party a specific non-financial legal entity, investment fund, fiduciary financial entity of a trust, or natural person, attaching the following documents:

• Simple copy of the letter from the clearing entity with the BCB reception stamp authorizing the Issuer Entity to make debits and credits for public securities purchase operations in the primary market and/or repos with public securities carried out by the direct participant on behalf of the third party.
• Simple copy of the regulations that authorize the third party to carry out public securities purchase operations in the primary market and/or repos with public securities. Additionally, the following documents must be attached: a) Non-financial legal entities and Investment Funds
• Simple copy of the Entity's Deed of Incorporation and the Deed of the last Public Deed of Modification, if applicable.
• Simple copy of the electronic certification of registration in the National Taxpayer Registry with its respective Tax Identification Number (NIT), if applicable.
• Simple copy of the Commercial Registration Certificate or Update of Registration, as applicable, issued by the Commercial Registry granted to FUNDEMPRESA, in the case of commercial companies, if applicable. b) Fiduciary Financial Entities of Trusts
• Simple copy of the regulation (Law, Supreme Decree) that authorizes the constitution of the trust, if applicable.
• Simple copy of the trust constitution contract.
• Simple copy of the regulation that governs the trust (General Regulation or other), if applicable.

Calle Ayacucho esquina Mercado - Teléfono: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz – Bolivia c) Natural Persons1

• Copy of Identity Card.

III. Repo Operations with Securities from Private Issuers Direct Participants: Stock Agencies with an operating license granted by the Financial System Supervision Authority (ASFI). These entities may carry out repo operations with the BCB, on their own account and/or on behalf of third parties, using securities expressly authorized by the BCB Board of Directors and registered in the Securities Market Registry.

Indirect Participants and requirements: Entities that constitute and participate in the financial system, authorized for their operation and/or regulated by ASFI or APS, unless restrictions are imposed by the regulations issued by the corresponding regulatory entities. The direct participant must request in writing to the Monetary Operations Department of the BCB to include as their third party a specific entity, submitting a note requesting its registration, attaching the following documents:

• Simple copy of the letter from the clearing entity with the BCB reception stamp authorizing the Issuer Entity to make debits and credits for repo operations carried out by the Stock Agency on behalf of the third party.
• Simple copy of the regulations that authorize the third party to carry out repo operations with securities from private issuers.

1 Upon expiration, the holder must present the Registration Certificate from the National Tax Service with security code, valid for 5 calendar days from the date of certification, and the main or secondary activity that expressly states "capital placement". Otherwise, the BCB will act as a withholding agent.

Calle Ayacucho esquina Mercado - Teléfono: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz – Bolivia Additionally, the following documents must be attached: a) Entities with operating license and/or regulated by ASFI or APS

• Simple copy of the Entity's Deed of Incorporation and the Deed of the last Public Deed of Modification, if applicable.
• Simple copy of the electronic certification of registration in the National Taxpayer Registry with its respective Tax Identification Number (NIT).
• Simple copy of the Commercial Registration Certificate or Update of Registration, as applicable, issued by the Commercial Registry granted to FUNDEMPRESA, in the case of commercial companies.
• Simple copy of the Administrative Resolution issued by ASFI or APS granting the Operating License, if applicable. b) Investment Funds
• Simple copy of the Entity's Deed of Incorporation and the Deed of the last Public Deed of Modification, if applicable. c) Fiduciary Financial Entities of Trusts
• Simple copy of the regulation (Law, Supreme Decree) that authorizes the constitution of the trust, if applicable.
• Simple copy of the trust constitution contract.
• Simple copy of the regulation that governs the trust (General Regulation or other), if applicable. If indirect participants have the Electronic Auction and Repo Securities Contract or are registered as third parties with the BCB, it will not be necessary to submit the documentation indicated in the preceding subsections.

External Circular SGDB No. 65/2019 dated October 29, 2019, is hereby repealed.

Sincerely, DIGITALLY SIGNED DOCUMENT Luis Fernando Cernadas Miranda MONETARY OPERATIONS MANAGER a.i. Abel Fernando Sanjinés Álvarez GENERAL MANAGER a.i. Validate digital signatures at: validar.firmadigital.bo AFSA/LFCM/taab/rcrp/advr