EXTERNAL CIRCULAR OF THE CENTRAL BANK OF BOLIVIA

La Paz, April 10, 2013 SGDB No. 018/2013

FROM: GENERAL MANAGEMENT FINANCIAL ENTITIES MANAGEMENT TO: FINANCIAL ENTITIES SUBJECT: SURVEY ON CREDIT MARKET CONDITIONS

Ladies and Gentlemen:

We are sending the reference survey corresponding to the first quarter of 2013 to be answered by the highest executive of the area responsible for credits at your institution. We would appreciate the submission of the form to the Central Bank of Bolivia no later than Thursday, April 18, 2013. Any inquiries will be attended to by Lic. Martín Villegas (Phone: 2664937, e-mail: mmvillegas@bcb.gob.bo).

Sincerely.

[Signature] CRO/MMV/MAAM/OID/MVT Adj.: As indicated

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Ayacucho y Mercado • Tel: (591-2) 2409090 • Casilla: 3118 bcb@bcb.gob.bo • La Paz - Bolivia

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Survey on Credit Market Conditions

This survey aims to collect qualitative information on the perception of financial entities regarding the evolution of factors affecting the credit market. It is directed at the highest executives of the area responsible for loan origination.

A. General Data

Institution: .................................................................................................................................................... Name of the person responding: ........................................................................................................... Position: ........................................................................................................................................................ Phone: ................................................................... Fax: ............................................................................. E-mail: .........................................................................................................................................................

Instructions

1. This survey consists of a set of statements that must be marked with the alternative that best reflects the opinion of the respondent.
2. The evaluation of each statement must be compared with the results of the similar quarter of the previous management period.
3. In the option "other reasons" or "others," the corresponding reason or item must be specified in the form.

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Approval Standards

B. In the first quarter of the 2013 management period, the standards for loan approval were:

B.1 Corporate (If not applicable, go to point B.2)	B.2 SME (If not applicable, go to point B.3)	B.3 Microcredit (If not applicable, go to point B.4)
[ ] More restrictive [ ] Similar [ ] Less restrictive	[ ] More restrictive [ ] Similar [ ] Less restrictive	[ ] More restrictive [ ] Similar [ ] Less restrictive

B.4. If you selected "more restrictive," go to question B.4.1 for the corresponding credit type. If you selected "less restrictive," go to question B.4.2 for the corresponding credit type.

B.4.1 If the approval standards were "more restrictive," prioritize the factors that explain these changes (1 most important and 5 least important)

Factors	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)
Deterioration in companies' payment capacity.	[ ]	[ ]	[ ]
Deterioration of the value of presented guarantees	[ ]	[ ]	[ ]
Deterioration of the institution's funding conditions	[ ]	[ ]	[ ]
Institution's preference for other types of credits or assets	[ ]	[ ]	[ ]
Other reasons:	[ ]	[ ]	[ ]

B.4.2 If the approval standards were "less restrictive," prioritize the factors that explain these changes (1 most important and 5 least important)

Factors	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)
Improvement in companies' payment capacity.	[ ]	[ ]	[ ]
Increase in the value of presented guarantees	[ ]	[ ]	[ ]
Better funding conditions for the institution	[ ]	[ ]	[ ]
Institution's preference for this type of credit in relation to other types of credits or assets	[ ]	[ ]	[ ]
Other reasons:	[ ]	[ ]	[ ]

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Approval Standards

B. In the first quarter of the 2013 management period, the standards for loan approval were:

B.5 Residential Mortgage (If not applicable, go to point B.6)	B.6 Consumer (If not applicable, go to point B.7)
[ ] More restrictive [ ] Similar [ ] Less restrictive	[ ] More restrictive [ ] Similar [ ] Less restrictive

B.7. If you selected "more restrictive" in question B.5, go to question B.7.1; if you selected "less restrictive," go to question B.7.2.

B.7.1 If the approval standards were "more restrictive," prioritize the factors that explain these changes (1 most important and 5 least important)

Factors	Residential Mortgage (Prioritization)	Consumer (Prioritization)
Deterioration in households' payment capacity.	[ ]	[ ]
Deterioration of the value of presented guarantees	[ ]	[ ]
Deterioration of the institution's funding conditions	[ ]	[ ]
Institution's preference for other types of credits or assets	[ ]	[ ]
Other reasons:	[ ]	[ ]

B.7.2 If the approval standards were "less restrictive," prioritize the factors that explain these changes (1 most important and 5 least important)

Factors	Residential Mortgage (Prioritization)	Consumer (Prioritization)
Improvement in households' payment capacity.	[ ]	[ ]
Increase in the value of presented guarantees	[ ]	[ ]
Better funding conditions for the institution	[ ]	[ ]
Institution's preference for this type of credit in relation to other types of credits or assets	[ ]	[ ]
Other reasons:	[ ]	[ ]

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Loan Demand (Applications)

C. In the first quarter of the 2013 management period, loan demand (applications) behaved as follows:

C.1 Corporate (If not applicable, go to point C.2)	C.2 SME (If not applicable, go to point C.3)	C.3 Microcredit (If not applicable, go to point C.4)
[ ] Increased [ ] Remained [ ] Decreased	[ ] Increased [ ] Remained [ ] Decreased	[ ] Increased [ ] Remained [ ] Decreased

C.4. If you selected "increased," go to question C.4.1 for the corresponding credit type. If you selected "decreased," go to question C.4.2 for the corresponding credit type.

C.4.1 If "increased," prioritize the loan purposes that influenced this behavior (1 most important and 5 least important)

Factors	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)
Increase in working capital needs	[ ]	[ ]	[ ]
Increase in investment capital needs	[ ]	[ ]	[ ]
Increase in fixed asset replacement needs	[ ]	[ ]	[ ]
Higher applications for purchase of debt from other financial entities	[ ]	[ ]	[ ]
Other: ...	[ ]	[ ]	[ ]

C.4.2 If "decreased," prioritize the loan purposes that influenced this behavior (1 most important and 5 least important)

Factors	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)
Decrease in working capital needs	[ ]	[ ]	[ ]
Decrease in investment capital needs	[ ]	[ ]	[ ]
Decrease in fixed asset replacement needs	[ ]	[ ]	[ ]
Lower applications for the purchase of debt from other financial entities	[ ]	[ ]	[ ]
Other:	[ ]	[ ]	[ ]

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Loan Demand (Applications)

C. In the first quarter of the 2013 management period, loan demand (applications) behaved as follows:

C.5 Residential Mortgage (If not applicable, go to point C.6)	C.6 Consumer (If not applicable, go to point C.7)
[ ] Increased [ ] Remained [ ] Decreased	[ ] Increased [ ] Remained [ ] Decreased

C.7. If you selected "increased" in question C.5, go to question C.7.1; if you selected "decreased," go to question C.7.2.

C.7.1 If residential mortgage credit demand "increased," prioritize the loan purposes that influenced this behavior (1 most important and 5 least important).

Factors	Prioritization
Housing construction	[ ]
Housing acquisition	[ ]
Housing renovation	[ ]
Higher applications for purchase of debt from other financial entities	[ ]
Other:.....	[ ]

C.7.2 If residential mortgage credit demand "decreased," prioritize the loan purposes that influenced this behavior (1 most important and 5 least important).

Factors	Prioritization
Housing construction	[ ]
Housing acquisition	[ ]
Housing renovation	[ ]
Lower applications for the purchase of debt from other financial entities	[ ]
Other:.....	[ ]

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Loan Approvals

D. In the first quarter of the 2013 management period, loan approvals behaved as follows:

D.1 Corporate (If not applicable, go to point D.2)	D.2 SME (If not applicable, go to point D.3)	D.3 Microcredit (If not applicable, go to point D.4)
[ ] Increased [ ] Remained [ ] Decreased	[ ] Increased [ ] Remained [ ] Decreased	[ ] Increased [ ] Remained [ ] Decreased

D.4. If you selected "increased," go to question D.4.1 for the corresponding credit type. If you selected "decreased," go to question D.4.2 for the corresponding credit type.

D.4.1 If "increased," prioritize the loan purposes that influenced this behavior (1 most important and 5 least important)

Factors	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)
Increase in working capital needs	[ ]	[ ]	[ ]
Increase in investment capital needs	[ ]	[ ]	[ ]
Increase in fixed asset replacement needs	[ ]	[ ]	[ ]
Higher approvals for purchase of debt from other financial entities	[ ]	[ ]	[ ]
Other: ...	[ ]	[ ]	[ ]

D.4.2 If "decreased," prioritize the loan purposes that influenced this behavior (1 most important and 5 least important)

Factors	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)
Decrease in working capital needs	[ ]	[ ]	[ ]
Decrease in investment capital needs	[ ]	[ ]	[ ]
Decrease in fixed asset replacement needs	[ ]	[ ]	[ ]
Lower approvals for the purchase of debt from other financial entities	[ ]	[ ]	[ ]
Other: ...	[ ]	[ ]	[ ]

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Loan Approvals

D. In the first quarter of the 2013 management period, loan approvals behaved as follows:

D.5 Residential Mortgage (If not applicable, go to point D.6)	D.6 Consumer (If not applicable, go to point D.7)
[ ] Increased [ ] Remained [ ] Decreased	[ ] Increased [ ] Remained [ ] Decreased

D.7. If you selected "increased" in question D.5, go to question D.7.1; if you selected "decreased," go to question D.7.2.

D.7.1 If residential mortgage credit approvals "increased," prioritize the loan purposes that influenced this behavior (1 most important and 5 least important).

Factors	Prioritization
Housing construction	[ ]
Housing acquisition	[ ]
Housing renovation	[ ]
Higher approvals for purchase of debt from other financial entities	[ ]
Other:.....	[ ]

D.7.2 If residential mortgage credit approvals "decreased," prioritize the loan purposes that influenced this behavior (1 most important and 5 least important).

Factors	Prioritization
Housing construction	[ ]
Housing acquisition	[ ]
Housing renovation	[ ]
Lower approvals for the purchase of debt from other financial entities	[ ]
Other:.....	[ ]

Rejection of Credit Applications

E. Prioritize the most important reasons why credit applications were not approved during the first quarter of 2013 (1 most important and 5 least important):

Reasons	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)	Residential Mortgage (Prioritization)
Insufficient level of guarantees	[ ]	[ ]	[ ]	[ ]
Insufficient projected income to meet debt payments	[ ]	[ ]	[ ]	[ ]
Insufficient information on repayment sources and credit history	[ ]	[ ]	[ ]	[ ]
Inadequate client credit record	[ ]	[ ]	[ ]	[ ]
Other (specify):	[ ]	[ ]	[ ]	[ ]

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Funding Sources

F.1 In the first quarter of the 2013 management period, the funding of your institution's credit portfolio by funding type behaved as follows:

	Substantially Increased	Increased	Remained	Decreased	Substantially Decreased	Not applicable
Public deposits	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Domestic funding lines for productive loans.	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Domestic funding lines for housing provision.	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
External funding lines for productive loans.	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Other sources:...	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]

F.2 In the first quarter of the 2013 management period, the average financial cost of funding sources behaved as follows:

	Substantially Increased	Increased	Remained	Decreased	Substantially Decreased	Not applicable
Public deposits	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Domestic funding lines for productive loans.	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Domestic funding lines for housing provision.	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
External funding lines for productive loans.	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Other sources:...	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]

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Expectations

G. For the next quarter, it is expected that credits will behave as follows in relation to the similar quarter of the previous management period:

G.1 Corporate (If not applicable, go to point G.2)	G.2 SME (If not applicable, go to point G.3)	G.3 Microcredit (If not applicable, go to point G.4)
[ ] Increase [ ] Remain [ ] Decrease	[ ] Increase [ ] Remain [ ] Decrease	[ ] Increase [ ] Remain [ ] Decrease

G.4 Residential Mortgage (If not applicable, go to point G.5)	G.5 Consumer (If not applicable, go to point G.6)
[ ] Increase [ ] Remain [ ] Decrease	[ ] Increase [ ] Remain [ ] Decrease

G.6. Indicate the three main reasons that justify your answer to the previous questions for each credit type, listing them in order of importance (1 the most important reason).

Corporate	SME	Microcredit
1.	1.	1.
2.	2.	2.
3.	3.	3.

Residential Mortgage	Consumer
1.	1.
2.	2.
3.	3.

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H. For the next quarter, it is expected that credits to the productive sector will behave as follows in relation to the similar quarter of the previous management period:

	H.1 Corporate (If not applicable, go to point H.2)	H.2 SME (If not applicable, go to point H.3)	H.3 Microcredit
	[ ] Increase [ ] Remain [ ] Decrease	[ ] Increase [ ] Remain [ ] Decrease	[ ] Increase [ ] Remain [ ] Decrease
Agroindustry and/or rural sector	[ ] [ ] [ ]	[ ] [ ] [ ]	[ ] [ ] [ ]
Manufacturing industry	[ ] [ ] [ ]	[ ] [ ] [ ]	[ ] [ ] [ ]
Construction	[ ] [ ] [ ]	[ ] [ ] [ ]	[ ] [ ] [ ]
Other (specify):	[ ] [ ] [ ]	[ ] [ ] [ ]	[ ] [ ] [ ]

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