TECHNICAL STANDARDS FOR REPO OPERATIONS TO PROTECT BANKING LIQUIDITY

-Rep-

SYSTEM STABILITY DEPARTMENT
FINANCIAL STABILITY AND PUBLIC POLICIES MANAGEMENT

MARCH 2024

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INDEX

1 GENERALITIES.........................................................1
1.1 BACKGROUND...................................................1
1.2 LEGAL BASIS..........................................................1
1.3 SCOPE OF APPLICATION.......................................1
2 OBJECTIVE.................................................................1
3 DEFINITIONS...........................................................1
4 GENERAL STANDARDS..............................................3
5 SPECIFIC STANDARDS............................................4
5.1 REQUEST FOR REPO OPERATION...............4
5.2 CONDITIONS OF REPO OPERATIONS ..5
5.3 APPROVAL OF REPO REQUEST ........5
5.4 COLLATERAL FOR REPO OPERATION ..........6
5.5 TRANSFER OF SECURITIES..............................6
5.6 DISBURSEMENT AND REPAYMENT OF REPO OPERATIONS .............................................7
5.7 SPECIAL CONDITIONS DURING THE TERM..7
5.8 MONITORING AND REPORTS...................................8
6 SPECIAL PROVISIONS...................................8
7 EFFECTIVENESS, DISTRIBUTION AND DISCLOSURE..............8
MODIFICATION CONTROL TABLE.............10
ANNEXES

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1 GENERALITIES

1.1 BACKGROUND

The Central Reserve Bank of El Salvador aims to maintain the most favorable financial conditions for the liquidity and stability of the financial system.

In February 2011, reforms to the Banking Law entered into force, pursuant to Legislative Decree No. 596 of January 20, 2011, under which the Central Bank was authorized to directly conduct repo operations referred to in Article 49-B of said Banking Law at the counter.

1.2 LEGAL BASIS

These technical standards are issued based on what is stipulated in Articles 3, letters d), e), g) and j); 23, letters g) and j) of the Organic Law of the Central Reserve Bank of El Salvador and Articles 2 and Article 49-B of the Banking Law.

1.3 SCOPE OF APPLICATION

These technical standards will be applied by the Presidency, the Financial Stability and Public Policies Management, the Financial Operations Management, the Compliance Office, and the Legal Management in relations with Banks, arising from repo operations to protect banking liquidity.

2 OBJECTIVE

To regulate repo operations that the Central Reserve Bank of El Salvador conducts with solvent banks, in the situations foreseen in Article 49-B of the Banking Law, with the securities determined in these technical standards.

3 DEFINITIONS

3.1 Banks:

Financial institutions that operate habitually in the financial market and are regulated by the Banking Law.

3.2 CRB:

Central Reserve Bank of El Salvador.

3.3 Solvent Bank:

A bank will be considered solvent if it presents a ratio of at least 12% between its Equity Fund and its Risk-Weighted Assets, according to the latest equity fund requirement report published by the SSF on its website, or 14.5% for banks that have just started operations, according to what is established in Article 20 of the Banking Law.

3.4 Board of Directors:

The supreme direction and administration of the CRB to which corresponds the exercise of the powers and functions entrusted to it by the Law.

3.5 FOM:

Financial Operations Management.

3.6 FSPM:

Financial Stability and Public Policies Management.

3.7 IDG:

Deposit Guarantee Institute.

3.8 Margin Calls:

This is the instruction made to the seller to provide more securities or money in a Repo operation, as a result of a negative variation in the price of the securities, with respect to the margin.

3.9 AML/CFT/CPF:

Money Laundering and Asset Confiscation, Terrorism Financing, and Financing of the Proliferation of Weapons of Mass Destruction.

3.10 Compliance Office:

Advisory department of the Central Reserve Bank of El Salvador.

3.11 Required Equity:

This is the amount equivalent to 12% of Risk-Weighted Assets for each bank, or 14.5% for banks that have just started operations, according to what is established in Article 20 of the Banking Law.

3.12 Repo Seller or Buyer:

That person who in a Repo acquires ownership of securities for a sum of money and undertakes to transfer to the repo buyer ownership of an equal number of securities of the same kind, within the agreed term, against reimbursement of the same price plus a premium.

3.13 Repo Buyer or Seller:

That person who in a Repo transfers ownership of securities for a sum of money and undertakes to acquire from the repo seller ownership of an equal number of securities of the same kind, within the agreed term, against delivery of the same price plus a premium.

3.14 Repo (Rep):

This is the contract regulated by the Commercial Code, through which the repo buyer acquires ownership of securities for a sum of money and undertakes to transfer to the repo seller ownership of an equal number of securities of the same kind and their accessories, within the agreed term, against reimbursement of the same price plus a premium.

3.15 SSF:

Superintendence of the Financial System.

3.16 Dematerialized Value:

term applied to the value represented by means of an account entry.

4 GENERAL STANDARDS

4.1

The resources that the CRB will use for repo operations will come from funds that the State deposits to the CRB for such effect.

4.2

A bank may request liquidity support for a maximum balance of up to 100% of its required equity. For this maximum, other existing modalities of liquidity assistance with the CRB will also be computed.

4.3

The CRB will determine the amount and term to be granted according to compliance with the requirements contained in these standards and in accordance with the availability of resources.

4.4

Prior to carrying out each Repo operation, the CRB will request the SSF to issue a report on the financial situation of the requesting bank addressing solvency, liquidity risk, credit risk, profitability, and other relevant aspects that the SSF considers necessary for the purpose of providing liquidity assistance, including its recommendation to grant or not grant such assistance. This report will be requested by the FSPM, and the SSF must send the respective response no later than the second calendar day counted from the receipt of the request.

4.5

The CRB will verify compliance with the requirements contemplated in these technical standards.

4.6

Banks that wish to conduct repo operations must have previously signed a framework agreement with the CRB, in which the bank's disposition to provide coverage is established, the identification of these, the assumption of all financial costs incurred by the CRB to carry out the operation, all necessary information for the signing and monitoring of the repo contract.

4.7

The securities to be repoed by banks for repo operations must meet the characteristics described in these standards.

4.8

These operations, being operations of last resort, will be granted at penalized interest rates.

4.9

The requesting bank may withdraw in writing at any time from the request made, which will automatically suspend the evaluation process; in such case, the FOM will perform the calculation and the corresponding debit to the bank's account for the value of costs, commissions, penalties, and all those incurred or to be incurred by the CRB or the State as a consequence of the suspension. The notification of the decision taken by the requesting bank must be addressed to the Presidency of the CRB with a copy to the FSPM and the SSF.

4.10

Upon arrival of the end date of the repo operation term, the CRB will debit the requesting bank's account for the value of the repo (including interest rate, commitment commissions, disbursement commissions, and other commissions and surcharges) and credit the Ministry of Finance's account.

4.11

Repo operations will be conducted by banks directly at the CRB counter, and may be conducted with physical or dematerialized securities.

4.12

The Ministry of Finance will deposit resources to the CRB so that it can carry out repo operations, which will be conducted in accordance with the availability of funds and compliance with the requirements contained in these technical standards.

5 SPECIFIC STANDARDS

5.1 REQUEST FOR REPO OPERATION

5.1.1

In case a bank wishes to use this mechanism, it must send the request to the CRB when it is using the resources of the second tranche of its Liquidity Reserve.

5.1.2

The CRB's Compliance Office will perform due diligence on the bank and any related counterparties in this operation. If it is identified that any of these represents a level of exposure to AML/CFT/CPF risk that cannot be mitigated or managed, or is on lists issued by the Office of Foreign Assets Control (OFAC), lists issued by the United Nations Security Council of sanctioned persons, or public lists issued by international bodies and binding for El Salvador related to terrorism or affiliated groups, or possesses a conviction or sentence against them for crimes related to AML/CFT/CPF; the procedures established in the Manual for the Prevention of Money Laundering and Asset Confiscation and Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction must be carried out.

5.1.3

Banks must present a certificate issued by the legal representative of said entity based on confirmation of the source and destination of the repo funds and the application of controls for

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CENTRAL RESERVE BANK OF EL SALVADOR | TECHNICAL STANDARDS FOR REPO OPERATIONS TO PROTECT BANKING LIQUIDITY | SYSTEM STABILITY DEPARTMENT

prevention executed by their compliance units. The latter must be signed by the Compliance Officer of each institution.

5.1.4 Banks must direct their request for repo operations, according to Annex No. 1, to the Presidency of the CRB, with a copy to the FSPM and the SSF, indicating the amount and term required.

5.1.5 Banks may request a repo on any calendar day, through a written request and to the email address asistencia_liquidez@bcr.gob.sv

## 5.2 CONDITIONS OF REPO OPERATIONS

5.2.1 The premium in repo operations will be the financial cost (including interest rates, commitment commissions, disbursement commissions, and other commissions and surcharges) for the CRB plus 500 basis points.

5.2.2 The term of repo operations will be up to 30 calendar days, with a maximum of six consecutive requests for repo operations.

5.2.3 To request a new repo operation, the bank must send the corresponding request no later than six calendar days before the expiration of the operation, in accordance with the format presented in Annex No. 1, except for the documentation from items 7 to 10 if there have been no changes.

## 5.3 APPROVAL OF REPO REQUEST

5.3.1 Prior to the approval of the repo operation, the FSPM within the report to be prepared will verify compliance with the general and specific standards listed above, in coordination with the FOM, Compliance Office, and Legal Management.

5.3.2 The CRB's Board of Directors will decide whether to approve or deny the repo operation request, and the general conditions of the operation, taking into consideration the proposal of the FSPM which will include the opinions of the Legal Management, the FOM, the International Management, and the Compliance Office.

5.3.3 The secretary of the Board of Directors will communicate to the bank the approval or denial of the requested repo operation.

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## 5.4 COLLATERAL FOR REPO OPERATION

5.4.1 Repo operations must be backed by securities equivalent to an additional five percent (5%) of the requested amount, of titles issued in United States dollars by the State, by the CRB, or by the IDG, valued at market prices. These securities must have a maturity date subsequent to the term of the requested repo operation.

5.4.2 The requesting bank must provide other instruments of the same type to maintain coverage due to changes in the market prices of the securities subject to the repo.

5.4.3 The securities to be repoed must meet the conditions to safely execute the operation, must exist, and be in the name of the bank and free of any type of encumbrance.

## 5.5 TRANSFER OF SECURITIES

5.5.1 The transfer of physical securities acquired in repo operations will be made in favor of the State, in accordance with common law norms.

5.5.2 When the requesting bank has custody of the titles, it must transfer and deliver them in the name of the State and they will be custodied by the CRB during the validity of the operation. The endorsement or delivery will be made at the time of signing the contract and, in the case of registered securities, the annotation will be made subsequently.

5.5.3 When the securities to be repoed are dematerialized, the requesting bank will instruct the Depository to proceed to transfer the repoed securities to the State, for which it will send a copy of the repo contract. The requesting bank must inform the FOM about the transfer of the securities.

5.5.4 When the securities are custodied by the CRB, the requesting bank must transfer them in the name of the CRB, whose endorsement will be made at the time of the contract.

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## 5.6 DISBURSEMENT AND REPAYMENT OF REPO OPERATIONS

5.6.1 Once the request is approved by the CRB's Board of Directors, the Legal Management will proceed to review the repo contract and other pertinent documents. After doing so, the contract will be signed by the President of the CRB or an authorized representative with powers to do so.

5.6.2 The disbursement of funds resulting from the negotiation of repo operations will be executed by the FOM via transfer instructed in the Real-Time Gross Settlement System (RTGS), from the account designated for such effect by the Ministry of Finance to the deposit account of the requesting bank at the CRB, after the repo operation is approved and contracts formalized.

5.6.3 The day after the expiration date of the Repo operation, the FOM will proceed to debit, through the Real-Time Gross Settlement System (RTGS), the requesting bank's account for the agreed amount which will include capital, interest, and commissions, and credit the corresponding balance in the account that the Ministry of Finance maintains at the CRB for such effect. The requesting bank will authorize this debit in the Repo contract.

5.6.4 After making the payment referred to in the previous point, actions necessary to transfer the repoed securities to their original holder will be carried out.

## 5.7 SPECIAL CONDITIONS DURING THE TERM

5.7.1 The destination of the funds from repo operations will be to meet deposit withdrawals and cannot perform operations that negatively affect their liquidity, specifically:

- 5.7.1.1. Granting new credits.
- 5.7.1.2. Granting additional financing to societies of its financial conglomerate or parent company.
- 5.7.1.3. Making early payments of obligations.
- 5.7.1.4. Making extraordinary expenses or purchases.
- 5.7.1.5. Making luxury expenses or purchases.
- 5.7.1.6. Granting bonuses, benefits, or additional remuneration to its employees, different from those established in the respective contracts or employment appointments.
- 5.7.1.7. Decreeing and paying dividends.

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5.7.1.8 Payments or direct or indirect financing to related parties by ownership or administration with the Institution.

5.7.2 The provisions established in item 5.7.1 must be recorded in the repo contract. Likewise, for the purpose of verifying compliance with these provisions, support from the SSF may be requested. The contract must also stipulate that in case of non-compliance with the special conditions, the respective repo becomes due.

## 5.8 MONITORING AND REPORTS

5.8.1 The requesting bank is obligated to inform the FSPM weekly on the use of funds, the way in which income will be generated to fulfill the operation, and that it is not failing to comply with item 5.7.1 of these standards.

5.8.2 Once repo operations are carried out, the FSPM will continue with the daily monitoring of the bank's liquidity, as well as the effect generated by the repo operation, for which it will prepare a weekly report to that effect. From the above, it will inform the Minister of Finance.

## 6 SPECIAL PROVISIONS

6.1 Operational and contingency difficulties that arise in the execution of these standards will be resolved by the Presidency of the CRB upon proposal of the FSPM, FOM, Legal Management, and Compliance Office, in their respective areas of competence. All of the above will be reported to the Board of Directors in the next session to the event.

6.2 Cases or situations not contemplated in these technical standards will be resolved by the Board of Directors.

## 7 EFFECTIVENESS, DISTRIBUTION AND DISCLOSURE

7.1 These technical standards will enter into force on March 15, two thousand twenty-four. These Standards repeal and render ineffective those approved in Session CD-10/2022 of April 29, 2022.

7.2 The Board of Directors will keep a copy of these technical standards as backup to the approval minutes and will deliver the original to the Risk and Strategic Management Management for custody. Likewise, it will deliver an electronic copy to the

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System Stability Department and the authorization to deliver electronic copies of these technical standards to the following units:

- 7.2.1. Presidency
- 7.2.2. Vice Presidency.
- 7.2.3. FSPM.
- 7.2.4. FOM.
- 7.2.5. Legal Management.
- 7.2.6. Payments and Values Department.
- 7.2.7. Financial Department
- 7.2.8. Compliance Office

7.3 The Board of Directors will deliver a copy of these technical standards to the SSF, the Ministry of Finance, and banks regulated by the Banking Law, following the distribution and sending control mechanisms already established.

7.4 The Risk and Strategic Management Management is authorized to publish these technical standards in the Administrative Instruments System, for general consultation.

7.5 These technical standards will be disclosed under the responsibility of the FSPM, through the System Stability Department.

7.6 These technical standards will be published in full on the CRB's Web page, for the knowledge of the general public.

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# MODIFICATION CONTROL TABLE

| Rev. No | Previous Version (Identification of section and content) | Approved Version (Identification of section and content) | Approver and date |
|---------|----------------------------------------------------------|----------------------------------------------------------|-------------------|
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ANNEXES
Annex No. 1
REQUEST FOR REPO OPERATIONS TO PROTECT BANKING LIQUIDITY

San Salvador, XX of XXX of 20XX

Licensed, Doctor, Engineer
__________________________
President
Central Reserve Bank of El Salvador
Present.

Dear Licensed, Doctor, Engineer:
Based on the provisions contained in Article 49-B of the Banking Law and the technical standards for Repo Operations to Protect Banking Liquidity approved by the Board of Directors of the Central Reserve Bank of El Salvador in Session No. CD-10/2022, dated April 29, 2022, and as legal representative of the Bank (or authorized representative) _______________, in compliance with the Board Agreement No XXX, taken in session XXXX, of XXXXXX of the month of XXXXX of 20xx, I request an amount of US$_____________________, (amount in letters)_________________________________, for a term of ____ calendar days, for which I propose to repo the securities detailed below:

1. Issuer:
2. Issuance Code:
3. Nominal Value:
4. Issuance Date:
5. Maturity Date:
6. Interest Rate or Yield:
7. Interest Payment Method:
8. Representation Form:
9. Custodian:

Attached please find:

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1. Certification of the minutes of the Board of Directors meeting where the agreement to carry out the repo operation is recorded, accompanied by the duly registered certificate of election of the Board of Directors.
2. List of titles to be reported, signed by the Legal Representative and certified by the Internal Auditor.
3. Original certificate of legitimization of the securities to be reported, issued by a specialized society in the deposit and custody of securities.
4. In the case that the titles to be reported are under the custody of the requesting bank, they will be presented along with the application.
5. Latest audited and published financial statements, as well as the latest published quarterly financial statements.
6. Compliance plan specifying how the resources will be used, how the necessary income will be generated to fulfill the banking liquidity credit operation, and the measures that will be taken to overcome the lack of liquidity situation.

7. Copy of the Legal Representative's credential or copy of power of attorney, notarized, accrediting the signer of the application.
8. Copy of the DUI (Unique Identity Document) and Tax Identification Card of the legal representative or attorney-in-fact.
9. Copy of the Tax Identification Number (NIT) of the requesting bank.
10. Certified copy of the Deed of Constitution and Modifications, if any, duly registered in the Commerce Registry.
11. Copy of the document where the Superintendent is informed about the assets that will be pledged, in terms of what is stipulated in Art. 57 of the Banking Law.
12. Certification issued by the legal representative regarding the confirmation of the origin and destination of the funds.
13. Certification of the application of AML/CFT/FPDAM controls signed by the Compliance Officer.
14. Balance of all encumbered assets held by the entity as of the closing date of the day prior to the application.
15. Equity fund with figures as of the last closing date of the day prior to the application, as well as a projection thereof.

I declare under oath that the values are not pledged, seized, or committed and that with the requested amount, numeral 4.2 of the Technical Norms for Repo Operations to Protect Banking Liquidity is not violated.

Sincerely,

Legal Representative or Attorney-in-fact

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ANNEX 2

REPO OPERATIONS CONTRACT

We: ____________________, of ______________ years of age, ______________, from the domicile of San Salvador, with unique identity document number ______________, acting in name and representation, in my capacity as ______________ of the BANK ______________, ANONYMOUS SOCIETY, Banking Institution, from the domicile of San Salvador, with tax identification number ______________, which in the present may be referred to as "Requesting Bank or the Reported"; and ______________ of ______________ years of age ______________, from the domicile of ______________, with unique identity document number ______________, acting in name and representation, in my capacity as ______________ of the CENTRAL RESERVE BANK OF EL SALVADOR, an autonomous public technical institution, from the domicile of San Salvador, with Tax Identification Number zero six one four – zero one zero seven seven four – zero zero six – two, which in this instrument may be referred to as "the Central Bank", "BCR" or "the purchasing party"; through this instrument WE GRANT:

REPO OPERATIONS CONTRACT

I) OBJECT
The object of this contract is to regulate the liquidity assistance that the Central Reserve Bank will carry out through Repo Operations with the Requesting Bank, in order to provide assistance aimed at protecting banking liquidity, in accordance with Article 49-B of the Banking Law and the Technical Norms for Repo Operations to Protect Banking Liquidity.

II) DECLARATION OF OWNERSHIP
That the Requesting Bank is the owner and current possessor of the values subject to being reported detailed below:
(Table, list, etc.)
Which is proven with the valid Certificate of Legitimization of the values, issued by the Depository or the Legal Representative of the institution subject in case of having them under their own custody; or certificate issued by the Central Bank if they were custodied by it. Said certificate forms part of the annexed documents of this contract as an integral part of it.

III) AMOUNT AND YIELD RATE
The Central Reserve Bank has granted assistance with state funds in the amount of US$_____, which will generate an interest rate of ______ percent (this rate will be defined at the time of authorization of the Repo operation).

IV) TERM
The term of this Repo Operations Contract will be ______ calendar days. Its maturity will always be on a banking business day and cannot be later than the maturity date of the values offered.

V) GUARANTEE
Repo operations will be guaranteed with values issued in United States dollars by the State, by the Central Reserve Bank, or by the Deposit Guarantee Institute, at market price, which at all times must guarantee the equivalent of 105% of the value of the operation. In case the values suffer a deterioration, the bank must compensate for the deficiency, contributing new values or their equivalent in cash, for which the BCR will make the respective margin calls.

VI) TRANSFER OF OWNERSHIP
The transfer of ownership of the physical values acquired in repo operations will be made in favor of the State. (Endorsement, Public Deed, etc.)
When the Requesting Bank has custody of the titles, it must transfer and deliver them in the name of the State and they will be custodied by the Central Reserve Bank during the validity of the contract.
The endorsement or delivery will be made at the time of signing this contract in the case of registered securities, the annotation will be made subsequently.
When the values to be reported are dematerialized, the Requesting Bank will instruct the depositary society to proceed to transfer to the State the ownership of the reported values. It must inform the Financial Operations Management of the Central Reserve Bank hereinafter "The Management" about the transfer of the values.

VII) DISBURSEMENT AND CANCELLATION OF OPERATIONS.
The disbursement of funds resulting from the negotiation of repo operations will be executed by the Management, through a transfer instructed in the Gross Real-Time Settlement System (LBTR) from the account indicated for such effect by the Ministry of Finance to the deposit account in which the liquidity reserve of the requesting bank is constituted at the Central Reserve Bank.
On the maturity date of the Repo operation, the Management will debit from the deposit account that the Requesting Bank holds at the Central Reserve Bank through the LBTR System and credit the corresponding balance to the account that the Ministry of Finance maintains at the Central Reserve Bank for such effect.

VIII) AUTHORIZATION
The Requesting Bank authorizes the Central Reserve Bank to, through the Gross Real-Time Settlement System, debit from its deposit account the agreed amount which will include capital, interest, and commissions, if any, in case it does not make the corresponding payment for the Repo Operation, object of this contract.

IX) BREACH
In case the payment is not made by the Requesting Bank, or if it does not have sufficient funds in the Central Reserve Bank deposit account to make the payment for the operation, the restitution of the reported values will not be proceeded with, so the ownership of them will be understood to be in favor of the State, in the terms established in clause V of this contract, informing for subsequent effects to the Superintendence of the Financial System and to the Ministry of Finance.

X) SPECIAL CONDITIONS
The subject institution, during the validity of this Repo Operations Contract, cannot liquidate or alienate the assets given as guarantee, nor carry out operations that negatively affect its liquidity such as:
a) Granting new credits
b) Granting any type of additional financing to societies of its conglomerate or to its parent company
c) Making advance payments of obligations
d) Making extraordinary expenses or purchases
e) Making sumptuous expenses or purchases
f) Granting bonuses, benefits, or additional remuneration to its employees,
different from those established in the respective contracts or employment appointments
g) Decreeing and paying dividends.
Direct or indirect payments or financing to natural or legal persons related by ownership or administration with the Requesting Bank. The carrying out of any of the aforementioned operations will be considered a breach of contract and will give rise to the execution of the guarantees.
For the purpose of verifying compliance with the aforementioned conditions, the Central Reserve Bank may request support from the Superintendence of the Financial System.

XI) JURISDICTION AND APPLICABLE LEGISLATION
For the jurisdictional effects of this contract, the parties submit to the current legislation of the Republic of El Salvador, whose application will be carried out in accordance with the Organic Law of the Central Reserve Bank of El Salvador and the Technical Norms for Repo Operations to Protect Banking Liquidity. Likewise, they designate as special domicile this city, submitting to the competence of its courts.

XII) NOTIFICATIONS
All notifications regarding the execution of this contract will be valid only when made in writing to the addresses of the contracting parties, for which effect the parties designate as the place to receive notifications the following:
a) Bank XXXX in ____________________
b) Central Reserve Bank of El Salvador, in Juan Pablo II Building, Juan Pablo II Avenue, between 15th and 17th North Avenue, San Salvador.

IN WITNESS WHEREOF WE SIGN, in triplicate, this instrument, in the city of San Salvador, on the __________ day of the month of ___________ of the year two thousand ___________.

Bank XXXXX                                                                 Central Reserve Bank of El Salvador

In the city of San Salvador, at __________ hours on the day __________ of __________ of two thousand ___________. Before me, _____________, notary, of this domicile, appear, on the one hand, the gentleman_____________, of __________, _____________, from the domicile of _____________, whom I know, with unique identity document number _______________, acting in name and
representation, in his capacity as ______________ of the BANK ______________, ANONYMOUS SOCIETY, banking institution, from the domicile of San Salvador, with tax identification number ______________, and on the other hand, ______________, of ______________ years of age, (profession) from the domicile of ______________, whom I know, with Unique Identity Document number ______________, acting in name and representation, in his capacity as ______________ of the CENTRAL RESERVE BANK OF EL SALVADOR, an autonomous public technical institution, from the domicile of San Salvador, with tax identification card number zero six one four – zero one zero seven seven four – zero zero six – two, and THEY SAY: That the signatures placed at the foot of the previous CONTRACT OF REPO OPERATIONS TO PROTECT BANKING LIQUIDITY, are AUTHENTIC, having been placed in my presence by the appearing parties, who in the capacity in which they act recognize them as their own, as well as all the obligations, conditions, stipulations contained in the instrument preceding, granted in this city, today, drafted in __________ sheets of bond paper, which I have signed and sealed, in which the appearing parties literally DECLARE: *We: ______________, of ______________ years of age, ______________, from the domicile of San Salvador, with unique identity document number ______________, acting in name and representation, in my capacity as ______________ of the BANK ______________, ANONYMOUS SOCIETY, Banking Institution, from the domicile of San Salvador, with tax identification number ______________, which in the present may be referred to as "the selling party"; and -_____________ of ______________ years of age ______________, from the domicile of ______________, with unique identity document number ______________, acting in name and representation, in my capacity as ______________ of THE CENTRAL RESERVE BANK OF EL SALVADOR, an autonomous public technical institution, from the domicile of San Salvador, with tax identification number zero six one four – zero one zero seven seven four – zero zero six – two (or it can be the Vice President or a Special Attorney), which in this instrument may be referred to as "the Central Bank" or "the Bank"; through this instrument WE GRANT:

I, the undersigned notary, GIVE TESTIMONY: A) That the signatures that endorse the preceding document are AUTHENTIC, having been placed in my presence by the appearing parties, who also recognized as their own the obligations contained therein. B) That the representation with which the ______________ acts, in the indicated character BANK ______________, ANONYMOUS SOCIETY, is legitimate and sufficient for having had in view: 1) ______________; C) That the legal representation with which ______________ appears, (legal representative of THE CENTRAL RESERVE BANK OF EL SALVADOR.) is legitimate and sufficient. Thus the appearing parties expressed themselves, to whom I explained the legal effects of this notarial act, which consists of ____________ sheets and read by me the written text in its entirety and in a single act without interruption, they ratify its content and we sign.- I GIVE TESTIMONY.-

Bank xxxxxx                                                                 Central Reserve Bank of El Salvador