SGDB No. 047/2014: Authorization of ATC in the Integrated Payment Settlement System and Establishment of Guarantee Limits

[Logo: Central Bank of Bolivia]

EXTERNAL CIRCULAR OF THE CENTRAL BANK OF BOLIVIA

La Paz, November 27, 2014
SGDB No. 047/2014

FROM: GENERAL MANAGEMENT
FINANCIAL ENTITIES MANAGEMENT
TO: PARTICIPATING ENTITIES OF CREDIT CARD ADMINISTRATOR S.A. (ATC) SUBJECT: AUTHORIZATION OF ATC IN THE INTEGRATED PAYMENT SETTLEMENT SYSTEM (LIP) AND ESTABLISHMENT OF GUARANTEE LIMITS FOR COMPENSATION AND SETTLEMENT IN ATC.

Ladies and Gentlemen:

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

a) The Credit Card Administrator S.A. (ATC) 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 December 1, 2014, it is authorized as a participant and its account is approved for the processing and receipt of electronic transfers according to the following details:

Participant: CREDIT CARD ADMINISTRATOR
Code: 1450
Settlement Account: 6621 ATC S.A. – SETTLEMENT ACCOUNT

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

E12: Payment of ATC net multilateral debtor position E13: Payment of ATC net multilateral creditor position E14: Increase in ATC net multilateral debtor position E26: Request for ATC tranche liquidity credit.

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

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[Logo: Central Bank of Bolivia]

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

Each participant, one day prior to the start of the first operation cycle, will determine its “LPMND – ATC” for each currency denomination in which it will operate, communicating this to the Financial Entities Management through a 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 – ATC”

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

3. Communication of “LPMND – ATC” to ATC

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

4. Expansion and reduction of “LPMND – ATC”

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

b) Additionally, participants may request an expansion of their “LPMND – ATC” up to the total available collateral when this occurs during 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 – ATC” will be restored to their previous values.

ATC 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 ATC operation cycle starting from the receipt of the written note in the Financial Entities Management.

5. Schedules for communicating “LPMND – ATC”

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

In order to initiate the application of the described processes, participants must submit their requests for the establishment and expansion of their “LPMND – ATC” by 18:00 hours on Friday, November 28, 2014.

c) Participating entities must also request the addition of ATC operations (E12, E13, E14, and E26) to their current digital certificates in order to perform them in the LIP System.

For any inquiries, please contact the LIP Help Desk at Phones 2407262, 2147077, or 2409090 Extensions 1623 – 1627 and/or email ayudalip@bcb.gob.bo

Sincerely,

[Signature]
CCL/MMV/LIP/APM.

Ayacucho and Mercado • Tel:(591-2) 2409090 • P.O. Box: 3118 www.bcb.gob.bo • bcb@bcb.gob.bo • La Paz-Bolivia

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