Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 016/2017

SUBJECT: ECONOMIC POLICY ADVISORY - APPROVES MAXIMUM LIMIT FOR FOREIGN INVESTMENTS BY INSURANCE COMPANIES

VIEWED:

• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia.
• Law No. 1883 of June 25, 1998, on Insurance.
• Supreme Decree No. 25201 of October 16, 1998, which approves the Regulation of Law No. 1883.
• Report from the Economic Policy Advisory BCB-APEC-SIE-INF-2017-4 of January 20, 2017.
• Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2017-16 of January 20, 2017.

CONSIDERING:

That Law No. 1883 in its article 35 establishes that the Central Bank of Bolivia (BCB) will periodically set the maximum limit for investments by Insurance Companies in securities of issuers constituted abroad, which cannot be greater than fifty percent (50%) of the investment resources.

That Supreme Decree No. 25201 in its article 18 determines that the Board of Directors of the BCB must annually set the maximum limit for foreign investments by Insurance Companies.

That Law No. 1670 in its articles 6 and 14 establishes that the Issuing Entity must execute monetary policy and regulate the amount of money and the volume of credit according to its monetary program, and also ensure the strengthening of international reserves so as to allow the normal functioning of the country's international payments.

That the Economic Policy Advisory in its Technical Report BCB-APEC-SIE-INF-2017-4 recommends maintaining the percentage of ten percent (10%) as the maximum limit for foreign investments for Insurance Companies valid for the 2017 fiscal year.

//2. B.R. No. 016/2017

That the Legal Affairs Management, in its Report BCB-GAL-SANO-INF-2017-16 concludes that the proposal to maintain the maximum limit of foreign investment for Insurance Companies at 10% during the year 2017 is legally appropriate.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Maintain in the 2017 fiscal year the maximum limit of foreign investment for Insurance Companies at ten percent (10%) of their investment resources.

Article 2.- Communicate to the Supervisory Authority of Pensions and Insurance (APS) the preceding decision, so that it may authorize limits within the maximum fixed by this Resolution.

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

La Paz, January 24, 2017

Pablo Ramos Sánchez Luis Baudoin Olea Ronald Polo Rivero Abraham Pérez Alandia Sergio Velarde Vera