Regulatory Alerts2000-03-21 | Resolución 018/2000Added · Updated
Resolution 018/2000
The Board of Directors of the Central Bank of Bolivia amends Article 10 of the Internal Regulation for Operations through the ALADI Reciprocal Payments and Credits Agreement to allow non-EFA authorized banking entities to participate in the scheme. These entities must submit a Stand By Letter of Credit issued by a top-tier financial institution with at least an Aa3 Moody's rating, covering 60% of the entity's book equity, to secure their obligations. If the entity fails to meet payment obligations, the letter of credit is immediately enforceable for the outstanding amount plus interest calculated at LIBOR plus four percentage points.