SGDB No. 030/2012: Operational Procedure for the Internal Regulation of Operations under the ALADI Reciprocal Payments and Credits Agreement

EXTERNAL CIRCULAR OF THE CENTRAL BANK OF BOLIVIA

La Paz, June 15, 2012
SGDB No. 030/2012

FROM: GENERAL MANAGEMENT
INTERNATIONAL OPERATIONS DEPARTMENT
TO: FINANCIAL INSTITUTIONS
SUBJECT: OPERATIONAL PROCEDURE FOR THE INTERNAL REGULATION FOR OPERATIONS THROUGH THE ALADI RECIPROCAL PAYMENTS AND CREDITS AGREEMENT

Ladies and Gentlemen:

In compliance with Article 28 of the Internal Regulation for Operations through the ALADI Reciprocal Payments and Credits Agreement (CPCR-ALADI), approved by Resolution of the Board of Directors of the Central Bank of Bolivia (BCB) No. 140/2011 of October 25, 2011, the following provisions are established:

1. Deadline for registration of Instruments issued or guaranteed under CPCR - ALADI

Authorized Institutions have a maximum deadline of 5 business days, counted from the next business day following the date on which they issued or guaranteed an Instrument, to register and authorize it in the ALADI Information and Registration System (SIR – ALADI), attaching, as applicable, the SWIFT message for the issuance of the Letter of Credit or the Payment Order, the guaranteed Bill of Exchange, or the Promissory Note.

2. Deadline for negotiation, cancellation, and amendments

Authorized Institutions must register and authorize in the SIR – ALADI the negotiations, cancellations, modifications, or transfers of Instruments, relating to the deadline, maturity date, amount, payment method, and description of the merchandise, within a maximum deadline of 5 business days, counted from the next business day following the date on which these are carried out.

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Ayacucho y Mercado • Tel: (591-2) 2409090 • Casilla: 3118 bcb@bcb.gob.bo • La Paz - Bolivia 1

3. Authorization schedule for debits received in SIR-ALADI.

Debits received through SIR-ALADI until 16:00 hours must be authorized by Authorized Institutions until 16:30 hours.

Debits received after 16:00 hours must be authorized on the next business day.

4. Deadline for registration of received Instruments

Authorized Institutions must register and authorize in the SIR – ALADI all those Instruments issued or guaranteed, amendments, negotiations, and/or cancellations that they have received from Authorized Institutions abroad. For the purposes of this registration, they must attach the SWIFT message of issuance or the guaranteed instrument.

This information must be registered within a maximum deadline of 5 business days, counted from the next business day following the date on which they receive the notification.

The registration of this information is an indispensable condition for Authorized Institutions to have the right to reimbursement.

5. Deadline for reimbursement requests

Authorized Institutions must register and authorize in the SIR-ALADI reimbursement requests until 16:00 hours.

6. Semi-annual balance reconciliation

By the fifth business day of January and July of each year, Authorized Institutions must send to the International Operations Management of the BCB a report generated in the SIR-ALADI, with the detail of balances owed by instrument as of December 31 and June 30 respectively, which must be signed by their authorities. The BCB will reconcile the information within a period of 3 business days and return a copy signed by its authorities.

7. Debits for delays in information

The BCB will debit the amount in bolivianos determined in the “BCB Fine Table” according to the deadlines set in points 1, 2, 4, and 6 of this Circular, calculated from the day following the expiration of the deadline.

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

8. Requests for reversal

Authorized Institutions that request a reversal for the cancellation of an improper reimbursement will make a payment to the BCB for the value of the reimbursement plus interest for the period between the date of the deposit and the cancellation of the operation, calculated at the LIBOR rate for four (4) months plus four (4) percentage points.

9. Other information

Authorized Institutions must provide the BCB with the information requested regarding their operations in the CPCR-ALADI, within the deadline set by the BCB for this purpose.

External Circular SGRAL No. 038/2007 of December 24, 2007, is hereby repealed.

The External Operations Sub-management of the BCB (Telephone 2409090 Ext. 1802 - 1838) will handle inquiries regarding this Circular.

Sincerely,

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Ayacucho y Mercado • Tel: (591-2) 2409090 • Casilla: 3118 bcb@bcb.gob.bo • La Paz - Bolivia 3