SGDB No. 053/2012: Multilateral Net Debit Position Communication

EXTERNAL CIRCULAR OF THE CENTRAL BANK OF BOLIVIA

La Paz, December 5, 2012
SGDB No. 053/2012

FROM: GENERAL MANAGEMENT
FINANCIAL ENTITIES DEPARTMENT
TO: PARTICIPATING ENTITIES OF ELECTRONIC CLEARING CHAMBERS (ECC) AND CLEARING AND SETTLEMENT SERVICES ENTITIES (CSSE) THAT USE MULTILATERAL NET DEBIT POSITION LIMITS (MNDL) SUBJECT: COMMUNICATION OF MNDL

Ladies and Gentlemen:

The Central Bank of Bolivia (BCB), in compliance with Article 31 of the Regulation of Electronic Clearing Chambers and Clearing and Settlement Services (RCECYSCL) and to update Circular SGRAL No. 032/2004, establishes the following procedure for the communication of MNDL and the schedules for the expansion and reduction of these limits:

1. Determination of MNDL and communication to the BCB

Each participant, one day in advance of the start of the first operating cycle, will determine their MNDL for each currency denomination in which they operate and communicate it to the Financial Entities Department through a written note.

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

2. Approval or rejection of MNDL

The BCB, through SIPAV, will automatically verify that the limits requested by the participant comply with what is established in the RCECYSCL and will communicate approval or rejection via email through the SIPAV Help Desk.

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3. Communication of MNDL to the ECC and CSSE

The BCB will communicate the MNDL amounts of each participant by currency denomination to the ECC and CSSE before the start of their operations. This information will be sent through SIPAV.

4. Expansion and reduction of MNDL

a) Participants may expand their MNDL before or during a cycle through the transfer of funds to the liquidating account of the ECC or CSSE. Likewise, during the operating hours of the ECC and CSSE, participants may request, through a written note to the Financial Entities Department of the BCB, the expansion of their MNDL by currency denomination with uncommitted percentages of their RAL Fund or settlement guarantee. This expansion will take effect in the current operating cycle.

b) Additionally, in the case of the Clearing Chamber for Electronic Transfer of Funds Orders (ACH), participants may request an expansion of their MNDL up to the total available of their collateral for the third operating cycle, when it takes place during a weekend or holiday.

These requests must be made with a written note to the Financial Entities Department of the BCB.

The Financial Entities Department will effect the modification of these limits in SIPAV before the start of the third weekend or holiday cycle, which will remain in effect until the next first cycle, when the MNDL will be restored to their previous values.

ACH 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 operating cycle of the ECC and CSSE from the receipt of the written note in the Financial Entities Department.

5. Schedules for MNDL communication

Requests for modification of the MNDL will be received by the BCB during the hours of 8:30 to 16:00.

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With the objective of initiating the application of the process described in point 4.c, starting from the third cycle on 12/14/2012, participants must present their request for expansion of the MNDL by 16:00 on Thursday 12/13/2012.

Sincerely,

[Signature]
CRO/MMV/MAAM/PMS/JCLTF

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

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