Requirements to Participate in Open Market Operations and Operations with National Treasury Securities Through the Electronic Auction System

EXTERNAL CIRCULAR La Paz, September 8, 2023 CIEX N° 37/2023 FROM: GENERAL MANAGEMENT MONETARY OPERATIONS MANAGEMENT TO: ENTITIES REGULATED, SUPERVISED AND/OR OVERSIGHTED BY ASFI OR APS SUBJECT: REQUIREMENTS TO PARTICIPATE IN OPEN MARKET OPERATIONS AND OPERATIONS WITH NATIONAL TREASURY SECURITIES THROUGH THE ELECTRONIC AUCTION SYSTEM Gentlemen: The Central Bank of Bolivia (BCB) informs entities regulated, supervised and/or overseen by the Financial System Supervision Authority (ASFI) or by the Pensions and Insurance Supervision and Control Authority (APS) of the requirements to participate in public auctions, money desk, and repo operations with the BCB.

1. Participants 1.1. Participation in public auction and money desk To participate in the offering of public securities through public auction and money desk, the following participants are considered. 1.1.1 Direct participants Direct participants are entities regulated, supervised and/or overseen by ASFI or APS, provided that their sectoral regulation allows it and after signing the Electronic Public Securities and Repo Auction Contract. 1.1.2 Indirect participants These are entities that can carry out public securities purchase operations in the primary market through stock brokerage firms, to the extent permitted by their sectoral regulation. Indirect participants are constituted by the following groups: a) Entities regulated, supervised and/or overseen by ASFI or APS. b) Public and private companies. c) Natural persons. 1.2. Participation in repo operations with the BCB To participate in repo operations with the BCB with public or private securities, the following participants are considered. 1.2.1 Direct participants Direct participants are stock brokerage firms that have an operating authorization resolution granted by ASFI; the direct participant may carry out operations with public or private securities on their own behalf or on behalf of their indirect participant. 1.2.2 Indirect participants Indirect participants are entities regulated, supervised and/or overseen by ASFI or APS, provided that their sectoral regulation allows it.
2. Requirements for direct participants For the signing of contracts, the following requirements will be necessary: a) Simple photocopy of the Articles of Incorporation and/or the latest Amending Public Deed of the private company or simple photocopy of the regulation (Supreme Decree or Law) for the creation of the state company, as applicable. b) For state companies, legalized photocopy of the document designating the Chief Executive Officer or General Manager, as applicable. c) Legalized photocopy of the Power of Legal Representation with powers to sign contracts, as applicable. d) Simple photocopy of the Identity Card of the Legal Representative, Chief Executive Officer or General Manager authorized to sign the Electronic Securities and Repo Auction Contract. e) Simple photocopy of the electronic certification of registration in the National Taxpayer Registry with its respective Tax Identification Number (NIT). f) Simple photocopy of the Commercial Registry Certificate or Registry update, as applicable, issued by the Plurinational Commercial Registry Service (SEPREC). For state companies, when the Chief Executive Officer or General Manager signs the Electronic Securities and Repo Auction Contract, the presentation of the requirements indicated in subsection b) of this section will be sufficient. g) Simple photocopy of the Administrative Resolution issued by ASFI or APS, which grants the Operating License or Operating Authorization to the regulated entity, as applicable. For state companies, simple photocopy of the regulation (Supreme Decree or Law) that authorizes the carrying out of operations with public and/or private securities, as applicable. h) Simple photocopy of the express regulation that authorizes the direct participant to carry out public securities purchase operations in the primary market and/or repo operations with public or private issuer securities. i) Simple photocopy of the letter from the clearing entity with the BCB's reception stamp authorizing the Issuing Entity to make debits and credits for public securities purchase operations in the primary market and/or repo operations with public or private issuer securities carried out by the direct participant on its own behalf.
3. Requirements for indirect participants a) Written communication addressed to the Monetary Operations Management of the BCB, requesting the inclusion as an indirect participant of the entity regulated, supervised and/or overseen by ASFI or APS, public company, private company or natural person, as applicable. b) Simple photocopy of the letter from the clearing entity with the BCB's reception stamp authorizing the Issuing Entity to make debits and credits for public securities purchase operations in the primary market and/or repo operations with public or private issuer securities carried out by the direct participant on behalf of the indirect participant. c) Simple photocopy of the regulation issued by ASFI, APS or Law, as applicable, that authorizes the indirect participant to carry out public securities purchase operations in the primary market and/or repo operations with public or private issuer securities. Additionally, depending on the type of indirect participant, the following documents must be attached. 3.1 Public companies, private companies and entities regulated, supervised and/or overseen by ASFI or APS a) Simple photocopy of the Articles of Incorporation and/or the latest Amending Public Deed of the private company or simple photocopy of the regulation (Supreme Decree or Law) for the creation of the state company, as applicable. b) Simple photocopy of the electronic certification of registration in the National Taxpayer Registry with its respective NIT. c) Simple photocopy of the Commercial Registry Certificate or Registry update, as applicable, issued by SEPREC. For state companies, when the Chief Executive Officer or General Manager signs the Electronic Securities and Repo Auction Contract, the presentation of the requirements indicated in subsection b) of point 2 of this External Circular will be sufficient. 3.2 Natural persons 1 a) Photocopy of Identity Card. 1 Upon expiration, the holder must present the National Tax Service Registration Certificate with a 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. It does not apply to repo operations with public or private issuer securities.
4. Update of the Electronic Securities and Repo Auction Contract Direct participants must update the Electronic Securities and Repo Auction Contracts within a period of 6 months from the date of publication of this External Circular; after the indicated period, the contracts will be terminated as established in the contracts signed with the Issuing Entity. External Circular CIEX N° 51/2020 dated October 8, 2020, is hereby repealed. Sincerely. DIGITALLY SIGNED DOCUMENT Sergio Callisaya Avila MONETARY OPERATIONS MANAGER Rubén Gonzalo Ticona Chique GENERAL MANAGER Validate digital signatures at: validar.firmadigital.bo RGTCH/SCA/rmfc