Regulatory Alerts2017-05-23 | SGDB N° 026/2017Added · Updated
SGDB N° 026/2017
The Central Bank of Bolivia implements a mechanism allowing individuals to voluntarily exchange fixed-term deposits held in US dollars for the "BCB Bolivianización" bond. Eligible deposits must be book-entry, issued to natural persons by financial entities with risk ratings of AAA, AA, A, or BBB, and opened before March 21, 2017. Financial intermediaries are required to accept and execute transfer requests for these deposits to the Central Bank's Master Account via the Bolivia Securities Depository system.
BCB-DGD-VUC
BANCO CENTRAL DE BOLIVIA ESTADO PLURINACIONAL DE BOLIVIA
EXTERNAL CIRCULAR
La Paz, May 15, 2017 SGDB No. 026/2017
FROM: GENERAL MANAGEMENT MONETARY OPERATIONS MANAGEMENT TO: FINANCIAL INTERMEDIATION ENTITIES THAT ISSUE FIXED-TERM DEPOSITS SUBJECT: BANCO CENTRAL DE BOLIVIA IMPLEMENTS MECHANISM FOR EXCHANGE OF FIXED-TERM DEPOSITS FOR DIRECT SALES SECURITIES
Ladies and Gentlemen:
The Central Bank of Bolivia (BCB) notifies Financial Intermediation Entities that issue Fixed-Term Deposits (DPF) that, in compliance with Board Resolution No. 042/2017 which approves the "Regulation for the Exchange of DPF for Direct Sales Securities," starting May 22 of this year, it will make available to the public the "BCB Bolivianización" bond, which can be acquired through an exchange mechanism whereby natural persons who hold Fixed-Term Deposits in United States Dollars in the financial system can voluntarily transfer their deposits to the BCB, receiving in exchange the "BCB Bolivianización" bond.
Only DPF with the following characteristics will be accepted:
- Represented by book entries
- Issued in United States Dollars to natural persons
- Issued by financial entities with a license granted by the Financial System Supervision Authority with the most recent risk rating of AAA, AA, A, or BBB.
- Opened on a date prior to March 21, 2017. Fractionated DPF opened after this date will be accepted when the opening date of the original security is prior to March 21, 2017.
In this framework, Financial Intermediation Entities that issue DPF with the aforementioned characteristics are requested to accept and execute transfer requests for DPF to the MASTER ACCOUNT OF THE BANCO CENTRAL DE BOLIVIA (BCB).
Ayacucho Street corner Mercado · Telephone: (591-2) 2409090 · Fax: (591-2) 2661590 www.bcb.gob.bo · bancocentraldebolivia@bcb.gob.bo · La Paz Bolivia
BANCO CENTRAL DE BOLIVIA ESTADO PLURINACIONAL DE BOLIVIA
No. 600, through the system of Bolivia Securities Depository S.A., through which they regularly carry out DPF transfer operations.
For any inquiries, please contact the Acting Submanager of Open Market Operations, Lic. Tatiana Alcázar Bustillos at telephone 2661950 or at the email address talcazar@bcb.gob.bo.
Sincerely,
[Signature] ABEL P. SANJINES ALVAREZ MONETARY OPERATIONS MANAGER BANCO CENTRAL DE BOLIVIA
[Signature] CARLOS A. COLODRO LÓPEZ GENERAL MANAGER a.i. BANCO CENTRAL DE BOLIVIA
CCL/ASA/TAB/mavg
Ayacucho Street corner Mercado · Telephone: (591-2) 2409090 · Fax: (591-2) 2661590 www.bcb.gob.bo · bancocentraldebolivia@bcb.gob.bo · La Paz Bolivia