Marco Belmonte / Digital Page Seven
The Central Bank of Bolivia (BCB) assured that the liquidity of the financial system is at optimal levels and reaches 15,498 million bolivianos as of January 10.
In addition, he stressed that the release of resources from the legal reserve is mainly aimed at boosting productive credit.
“The liquidity of the financial system as of January 10 reaches 15,498 million bolivianos. This is a higher level than in January 2020 when this indicator barely reached 5,581 million bolivianos, “said the BCB’s main advisor, Sergio Cerezo, in contact with Page seven.
In this way, the BCB advisor ruled out that there are liquidity problems in the financial system, as observed by some analysts.
“The liquidity of the financial system comes from the difference of two sources: one is the deposits and the other the portfolio, the difference between the two as of January 10 is 14,512 million bolivianos, that means that the financial entities have the resources to channel portfolio ”, Cerezo pointed out.
You can also read: The BCB reduces the legal reserve rate to direct resources to productive credit
Also, he stressed that liquidity has no relationship with public sector auction operations.
According to Cerezo, the only thing he is doing with the reduction of the legal reserve and the constitution of a Fund is to free up resources to locate them or direct them to the productive sector.
He added that the liquidity available to the financial system can be used for consumer loans, microcredit or the sector that the entities see fit.
“What we want to do with this measure is to free up legal reserve resources but that is focused exclusively on the productive portfolio. This goes hand in hand with the economic reactivation policy and considering that this sector generates added value and jobs ”, stressed the BCB executive.
On December 28, through Board Resolution No. 147/2021, the issuing entity approved the reduction of the Legal Reserve rates on Securities for national currency and foreign currency, by modifying the Legal Reserve Regulations.
The legal reserve refers to the reserves that financial institutions are obliged to keep in cash or in the BCB for deposits received from the public and for funds from short-term external financing.
According to the Legal Reserve Regulation, until December 28 the rates in national currency and national currency in UFV were 5.5% for reserve requirements in cash and 4.5% for reserve requirements.
While in foreign currency and with maintenance of value in dollars it was 10% for cash reserve requirements and 10% for reserve requirements for Fixed Term Deposits (DPF) greater than 720 days and 11% for other liabilities.
The new rates in force since January 10 are 5.5% for reserve requirements in national currency and national currency in UFV. And 3.5% for reserve requirements.
In foreign currency, the reserve in cash is 10%, and 9% for reserve in DPF securities greater than 720 days, in addition to 10% for the rest of the liabilities.
In the external circular of January 7 CIEX No. 2/2022 addressed to financial intermediation entities referring to the constitution of the Fund for Credits Destined to the Productive Sector (CPRO), the BCB informs them where the resources released from the reduction of legal reserve.
In the circular, the Issuing Entity indicates that the modification in the structure of the legal reserve rates will be effective as of January 10, 2022, releasing resources with which the CPRO is constituted.
It is explained that the participation of each financial entity in the CPRO Fund is equal to the resources is equal to the resources of the RAL Fund in national currency and foreign currency available after the application of the legal reserve rates and may be increased with voluntary contributions.
