[Logo: Banco Central de Bolivia]

EXTERNAL CIRCULAR OF THE CENTRAL BANK OF BOLIVIA

La Paz, July 9, 2013 SGDB No. 026 /2013

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

Ladies and Gentlemen:

We are sending the referenced survey corresponding to the second quarter of 2013 to be answered by the top executive of the credit area of your institution. We would appreciate the submission of the form to the Central Bank of Bolivia no later than Wednesday, July 17, 2013. Any inquiries will be attended by Lic. Oscar Diaz (Phone: 2664925, e-mail: odiaz@bcb.gob.bo).

Sincerely.

[Signature] MMV/CCL/OID/ODQ Adj.: As indicated

[Logo: Banco Central de Bolivia 85 Years] Ayacucho y Mercado • Tel:(591-2) 2409090 • Casilla: 3118 www.bcb.gob.bo • bcb@bcb.gob.bo • La Paz-Bolivia [Logo: Quinua 2013 International Year]

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[Logo: Banco Central de Bolivia]

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 to the top executives of the area responsible for granting loans.

A. General Data

Institution: ...................................................................................................................................................................

Name of the person responding: ...........................................................................................................................

Position: ...........................................................................................................................................................................

Phone: ................................................................... Fax: ...........................................................................................

Email: ...........................................................................................................................................................................

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 second 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 chose "more restrictive," go to question B.4.1 for the corresponding type of credit. If you chose "less restrictive," go to question B.4.2 for the corresponding type of credit.

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 collateral	[ ]	[ ]	[ ]
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 collateral	[ ]	[ ]	[ ]
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 second 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 chose "more restrictive," go to question B.7.1 for the corresponding type of credit. If you chose "less restrictive," go to question B.7.2 for the corresponding type of credit.

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 collateral	[ ]	[ ]
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 collateral	[ ]	[ ]
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 second quarter of the 2013 management period, loan demand (applications) had the following behavior:

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

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 purchasing 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 purchasing debt from other financial entities	[ ]	[ ]	[ ]
Other:	[ ]	[ ]	[ ]

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Loan Demand (Applications)

C. In the second quarter of the 2013 management period, loan demand (applications) had the following behavior:

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 in question C.5 you chose "increased," go to question C.7.1; if you chose "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 purchasing 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 purchasing debt from other financial entities	[ ]
Other:....	[ ]

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Loan Approvals

D. In the second quarter of the 2013 management period, loan approvals had the following behavior:

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

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 purchasing 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 purchasing debt from other financial entities	[ ]	[ ]	[ ]
Other: ...	[ ]	[ ]	[ ]

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Loan Approvals

D. In the second quarter of the 2013 management period, loan approvals had the following behavior:

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 in question D.5 you chose "increased," go to question D.7.1; if you chose "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 purchasing 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 purchasing debt from other financial entities	[ ]
Other:....	[ ]

Rejection of Credit Applications

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

Reasons	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)	Residential Mortgage (Prioritization)
Insufficient level of collateral	[ ]	[ ]	[ ]	[ ]
Insufficient income projection 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 second quarter of the 2013 management period, the financing of your institution's credit portfolio by funding type had the following behavior:

	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 second quarter of the 2013 management period, the average financial cost of funding sources had the following behavior:

	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 have the following behavior 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 type of credit, 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 have the following behavior 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	[ ] [ ] [ ]	[ ] [ ] [ ]	[ ] [ ] [ ]
Others (specify):	[ ] [ ] [ ]	[ ] [ ] [ ]	[ ] [ ] [ ]