Resolution 017/2003 Approving Regulations for Bolivian Accounts with Value Maintenance Relative to the UFV

BOARD RESOLUTION NO. 017/2003
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
APPROVES REGULATION FOR OPERATIONS OF
BOLIVIAN ACCOUNTS WITH VALUE MAINTENANCE RELATIVE TO THE UNIT OF HOUSING PROMOTION (UFV)

HAVING SEEN:
Law 1670 of October 31, 1995.
Law 2434 of December 19, 2002, on Update and Value Maintenance.
Supreme Decree 26390 of November 8, 2001, which creates the Unit of Housing Promotion.
Supreme Decree 26874 of December 21, 2002, which regulates the provision and management of the Universal Maternal-Infant Insurance.
Notes from the Ministry of Finance DGT.UO.BN.0284/2003 of January 28, 2003 and DGT.UO.BN 0363/2003 of February 5, 2003.
The note from the Ministry of Finance DGT.UO.BN. 0309/2003 of January 31, 2003.
The Report from the Monetary Operations Management GOM-SOSP-05/2003 of February 4, 2003.
The Report from the Legal Affairs Management SANO No. 021/2003 of February 6, 2003.

CONSIDERING:
That Law 1670 defines the functions of the Central Bank of Bolivia as Financial Agent of the Government and also establishes the functions of the Issuing Entity in relation to the Public Sector.

That Law 2434 regulates the application of the Unit of Housing Promotion (UFV), establishing, in its article 3 paragraph II, that the funds assigned to the Municipal Solidarity Fund and the balances owed by the General Treasury of the Nation as of December 31, 2002, for internal obligations arising from the external debt relief program HIPC II, will be updated relative to the UFV in effect at the time of payment, published by the Central Bank of Bolivia.

That Supreme Decree 26874 regulates the provisions and management of the Universal Maternal-Infant Insurance (SUMI). This Decree in its article 11 paragraph IV, authorizes the Ministry of Health and Social Welfare to open the National Solidarity Fund Account, at the Central Bank of Bolivia, in bolivianos, according to the value maintenance established by the UFV.

That the Ministry of Finance, through notes DGT.UO.BN.0284/2003 and DGT.UO.BN.0363/2003, requests the enabling of a Fiscal Current Account in bolivianos with Value Maintenance relative to the UFV named National Solidarity Fund.

That the Ministry of Finance, through note DGT.UO.BN. 0309/2003, requests the conversion from dollars to bolivianos with Value Maintenance relative to the UFV of the Special Accounts: Dialogue 2000 and Solidarity Fund for Education and Public Health.

That the Report from the Monetary Operations Management GOM-SOPS-05/2003, recommends limiting the number of government accounts denominated in UFV at the BCB to those that correspond directly and exclusively to the management of external debt relief resources.

That the Report from the Legal Affairs Management SANO No. 021/2003, establishes that the draft Regulation for Operations of Bolivian Accounts with Value Maintenance relative to the UFV does not contravene the current legal framework. Consequently, it corresponds to the Board of the Issuing Entity to consider its approval.

THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1.- Approve the Regulation for Operations of Bolivian Accounts with Value Maintenance relative to the UFV, in its three Chapters and 11 Articles, which as an annex, forms part of this Resolution.

Article 2.- This Resolution will enter into force on the day of its approval.

Article 3.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, February 6, 2003.

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Juan Antonio Morales A.

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Juan Medinaceli V. Armando Méndez M

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Enrique Ackermann A.

//4. R.D. Nº 017/2003
ANNEX
REGULATION FOR OPERATIONS OF BOLIVIAN ACCOUNTS WITH VALUE MAINTENANCE RELATIVE TO THE UNIT OF HOUSING PROMOTION (UFV)

CHAPTER I
GENERALITIES

Article 1.- (Object)
This Regulation aims to establish norms for the enabling and operations of Bolivian Accounts with Value Maintenance relative to the Unit of Housing Promotion (UFV), within the framework of Chapter V of Law No. 1670 which defines the functions of the Central Bank of Bolivia (BCB) as the government's financial agent.

Article 2.- (Scope of Application)
This Regulation will apply to the enabling and operations of all Bolivian Accounts with Value Maintenance relative to the UFV requested by the General Treasury of the Nation (TGN).

Article 3.- (Indexation)
All inflation indexation costs corresponding to Bolivian accounts with value maintenance relative to the UFV that the Government enables at the BCB, other than those mentioned in Article 1 of this Board Resolution, will be assumed by the TGN, with the exception of costs originating from the accounts “HIPC II Relief”, “Relief beyond HIPC II”, “Dialogue 2000”, “Municipal Solidarity Fund for School Education and Public Health” and “National Solidarity Fund”.

CHAPTER II
ACCOUNT ENABLING

Article 4.- (Request for Enabling)
The Ministry of Finance, through the Undersecretariat of Treasury and Public Credit, must present a duly justified request to the BCB for the enabling of accounts in bolivianos with value maintenance relative to the UFV.

//5. R.D. Nº 017/2003

Article 5.- (Account Enabling)
The Monetary Operations Management, through the Sub-management of Public Sector Operations, will request the Accounting Management to enable the required account.

Article 6.- (Communication of Enabling)
Once the account is enabled, the Monetary Operations Management will communicate to the applicant the number assigned to said account.

CHAPTER III
OPERATIONS PROCEDURE

Article 7.- (Fund Transfers)
Fund transfers will be carried out at the request of the Ministry of Finance through the Undersecretariat of Treasury and Public Credit.

Article 8.- (Authorized Signatures)
Withdrawal requests must have two legally accredited signatures at the General Secretariat of the BCB, by the Ministry of Finance.

Article 9.- (Commissions and Interest)
The BCB will not charge commissions nor pay interest for the management of these accounts.

Article 10.- (Account Closure)
The closure of these Accounts will be carried out upon written request from the Ministry of Finance.

Article 11.- (Account Closure for Lack of Activity)
If the balance of the Accounts remains without movement for more than one year, the BCB will request authorization from the Ministry of Finance to proceed with their closure.

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