BOARD OF DIRECTORS

BOARD RESOLUTION NO. 013/2023

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

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.
• Supreme Decree No. 25201 of October 17, 1998.
• Board Resolution No. 095/2022 of October 6, 2022, which approves the Statute of the Central Bank of Bolivia.
• Report BCB-APEC-SADB-INF-2023-1 of January 12, 2023, from the Economic Policy Advisory (APEC).
• Report BCB-GAL-SANO-DLBCI-INF-2023-11 of January 13, 2023, 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 specialized policies and general application regulations and internal norms, as well as 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 that are 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 shall not be greater than fifty percent (50%) of the investment resources.

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That Supreme Decree No. 25201 regulates the application of article 35 of Law No. 1883 in article 18, and establishes that the Board of Directors of the BCB, through an express resolution, must annually set the maximum limit for foreign investments.

That the Economic Policy Advisory, through Technical Report BCB-APEC-SADB-INF-2023-1, concludes and recommends to the Board the approval of the maximum limit for foreign investments by insurance entities for the 2023 management period.

That the Legal Affairs Management, through Report BCB-GAL-SANO-DLBCI-INF-2023-11, concludes that the proposal by APEC, which aims for the BCB to establish for the 2023 management period the maximum limit of foreign investment for Insurance companies, is legally viable, as it does not contravene the legal framework, recommending to the Board of the Issuing Entity its approval.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA,

RESOLVES:

Article 1.- Approve for the 2023 management period, the maximum limit of foreign investment for Insurance companies of two percent (2%) of their investment resources, which must be complied with within a maximum term of up to three (3) months, computable from the approval of this determination.

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

Article 3.- Board Resolution No. 012/2022 of January 18, 2022, is hereby repealed.

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

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

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La Paz, January 16, 2023

SIGNED. ROGER EDWIN ROJAS ULO, Oscar Ferrufino Morro, Gabriel Herbas Camacho, Gumercindo Héctor Pino Guzmán.