BOARD OF DIRECTORS

BOARD RESOLUTION NO. 011/2024

SUBJECT: ECONOMIC POLICY ADVISORY – APPROVAL OF THE MAXIMUM LIMIT FOR FOREIGN INVESTMENTS BY INSURANCE AND REINSURANCE ENTITIES.

VIEWING:

• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB) and its modifications.
• Law No. 1883 of June 25, 1998, on Insurance and its modifications.
• Supreme Decree No. 25201 of October 16, 1998.
• Board Resolution No. 095/2022 of October 6, 2022, which approves the Statute of the BCB.
• Report BCB-APEC-SADBC-INF-2024-3 of January 11, 2024, from the Economic Policy Advisory (APEC).
• Report BCB-GAL-SANO-DLBCI-INF-2024-11 of January 15, 2024, from the Legal Affairs Management (GAL).

CONSIDERING:

That Law No. 1670 in its Articles 44 and 54, subsections a) and q), determines that the highest authority of the Central Bank of Bolivia is its Board of Directors, responsible for defining its policies and specialized regulations of general application and internal rules, as well as for establishing administrative, operational, and financial strategies. To this effect, the Board is empowered to adopt general decisions that are necessary for the BCB to fulfill its functions, competence, and powers assigned by the Law, and those necessary for the fulfillment of its functions.

That Law No. 1883 in its Article 35 establishes that the BCB will periodically set the maximum limit for investments by Insurance companies in securities of issuers constituted abroad, which may not exceed fifty percent (50%) of the resources for investment.

That Supreme Decree No. 25201 establishes in Article 18 that, in accordance with Article 35 of the Insurance Law, the Central Bank of Bolivia will annually set the maximum limit for investments abroad.

That the Statute of the BCB indicates in its Article 10, items 1) and 25), as an attribution of the Board to approve general decisions and issue the rules that are necessary for the BCB to fulfill the functions, competencies, and powers assigned by the Law, as well as to regulate financial operations with the exterior carried out by public and private persons or entities.

That the Economic Policy Advisory, through Report BCB-APEC-SADBC-INF-2024-3, concludes and recommends to the Board the approval of the maximum limit for foreign investments by insurance entities for the 2024 management period.

That the Legal Affairs Management, through Report BCB-GAL-SANO-DLBCI-INF-2024-11, concludes that the proposal of the APEC aims for the BCB to establish for the 2024 management period the maximum limit of investment abroad for insurance entities at two percent (2%) of their investment resources, being that it does not contravene any regulation, is legally viable, recommending to the Board of the BCB to consider its approval.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA,

RESOLVES:

Article 1.- Approve for the 2024 management period, the maximum limit of investment abroad for Insurance and Reinsurance Entities of two percent (2%) of their investment resources.

Article 2.- Notify the Supervisory Authority of Pensions and Insurance (APS) of this Board Resolution, so that, within the framework of its attributions and functions, it transmits to the Insurance and Reinsurance Entities the determination adopted in the preceding Article.

Article 3.- Board Resolution No. 013/2023 of January 16, 2023, is hereby repealed.

Article 4.- This Resolution shall enter into force from its publication.

Article 5.- The Presidency and the General Manager are charged with the compliance of this Resolution.

La Paz, January 18, 2024

SIGNED: OSCAR FERRUFINO MORRO, Gabriel Herbas Camacho, Gumercindo Héctor Pino Guzmán, Diego Alejandro Perez Cueto Eulert.