SGDB No. 023/2015: Authorization of LINKSER in the Integrated Payment Clearing System (LIP) and Establishment of Guarantee Limits

B.C.B. / DGD-VUC 2015 MAY 25 PM 12: 17

EXTERNAL CIRCULAR OF THE CENTRAL BANK OF BOLIVIA La Paz, May 22, 2015 SGDB No. 023/2015

FROM: GENERAL MANAGEMENT FINANCIAL ENTITIES MANAGEMENT TO: FINANCIAL ENTITIES PARTICIPATING IN THE INTEGRATED PAYMENT CLEARING SYSTEM (LIP) AND LINKSER SUBJECT: AUTHORIZATION OF LINKSER IN THE INTEGRATED PAYMENT CLEARING SYSTEM (LIP) AND ESTABLISHMENT OF GUARANTEE LIMITS FOR COMPENSATION AND CLEARING IN LINKSER

Ladies and Gentlemen:

The Central Bank of Bolivia (BCB) communicates to all LIP participants:

a) The Clearing and Settlement Services Entity (ESCL) LINKSER has successfully completed the incorporation process into the aforementioned system, meeting the requirements set forth in its regulations, the Participation Contract, and the current Operational and IT Guide. Consequently, as of May 25, 2015, it is authorized as a participant, and its account is approved for processing and receiving electronic transfers according to the following details:

Participant: LINKSER S.A. Code: 996 Clearing Account: 7326 LINKSER – Clearing and Settlement Services Entity

The operations enabled for LINKSER's operations are as follows:

E27: Liquidity credit request LINKSER tranche E36: Payment of LINKSER net multilateral debtor position E37: Payment of LINKSER net multilateral creditor position E38: Increase in LINKSER net multilateral debtor position limit.

b) In compliance with Article 31 of the Regulations for Electronic Clearing Chambers and Clearing and Settlement Services (RCECYSCL), the following procedure for communicating Net Multilateral Position Limits (LPMND) and the schedules for expanding and reducing these limits for LINKSER operations is established:

1. Determination of “LPMND – LINKSER” and communication to the BCB

Each participant, one day in advance of the start of the first operational cycle, will determine their “LPMND – LINKSER” for each currency denomination in which they will operate, communicating this to the Financial Entities Management via written note.

The determined limits will remain in effect until the participant submits a new written communication to the Financial Entities Management for modification.

2. Acceptance or rejection of “LPMND – LINKSER”

The BCB, through the LIP System, will automatically verify that the limits requested by the participant comply with the RCECYSCL. The LIP System Help Desk will communicate acceptance or rejection via email.

3. Communication of “LPMND – LINKSER” to LINKSER

The BCB will communicate the “LPMND – LINKSER” amounts for each participant by currency denomination to LINKSER, prior to the start of its operations. This information will be sent through the LIP System.

4. Expansion and reduction of “LPMND – LINKSER”

a) Participants may expand their “LPMND – LINKSER”, before or during a cycle, by transferring funds to LINKSER’s clearing account. Likewise, during LINKSER’s operational hours, participants may request, via written note to the BCB’s Financial Entities Management, an expansion of their “LPMND – LINKSER” by currency denomination using uncommitted percentages of their RAL Fund or clearing guarantee. This expansion will take effect in the current operational cycle.

b) Additionally, participants may request an expansion of their “LPMND – LINKSER” up to the total available collateral when this occurs on weekends or holidays.

These requests must be made via written note to the BCB’s Financial Entities Management.

The Financial Entities Management will effect the modification of these limits in the LIP System before the start of the weekend or holiday cycle, which will remain in effect until the next cycle, after which the “LPMND – LINKSER” will be restored to their previous values.

LINKSER participants may request the interruption of this operation when they deem it appropriate, through a new written note.

c) Reductions will be applied in the next LINKSER operational cycle from the receipt of the written note in the Financial Entities Management.

5. Schedules for communicating “LPMND – LINKSER”

a) Requests for modification of the “LPMND – LINKSER” will be received by the BCB during the hours of 8:30 to 18:00.

b) In order to initiate the application of the described processes, participants must submit their request for the establishment and expansion of their “LPMND – LINKSER” by 18:00 on Tuesday, May 26, 2015.

c) Participating entities must also request the addition of LINKSER operations (E27, E36, and E38) to their current digital certificates to be able to perform them in the LIP System.

For any inquiries, please contact the LIP Help Desk at Phones 2407262, 2147077, 2661623, 2661645 and/or email ayudalip@bcb.gob.bo.

Sincerely,

[Signature] MISAEL MIRANDA VARGAS FINANCIAL ENTITIES MANAGER

[Signature] CARLOS A. COLDORO LÓPEZ GENERAL MANAGER a.i. CENTRAL BANK OF BOLIVIA

CCL/MMV/APM/QAU

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