Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 024/2015

SUBJECT: ECONOMIC POLICY ADVISORY – APPROVAL OF 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-2015-02 of February 4, 2015.
• Report from the Legal Affairs Management BCB-GAL-SANO-INF-2015-62 of February 6, 2015.

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 shall not exceed 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 to allow the normal functioning of the country's international payments.
• That the Economic Policy Advisory in its Technical Report BCB-APEC-SIE-INF-2015-02 recommends reducing the percentage to ten percent (10%) as the maximum limit for foreign investments for Insurance Companies valid for the 2015 fiscal year.

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//2. B.R. No. 024/2015

That the Legal Affairs Management in its report BCB-GAL-SANO-INF-2015-62 concludes that the proposal to reduce the maximum limit of foreign investment for Insurance Companies to 10% during the year 2015 is legally appropriate.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Reduce in the 2015 fiscal year the maximum limit of foreign investment for Insurance Companies to ten percent (10%) of their investment resources.

Article 2.- Communicate the foregoing decision to the Supervisory Authority of Pensions and Insurance (APS), so that it may authorize the 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, February 10, 2015

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Signatures:

• Marcelo Zabalaga Estrada
• Reynaldo Yujra Segales
• Álvaro Rodríguez Rojas
• Abraham Pérez Alandia
• Ronald Polo Rivero
• Sergio Velarde Vera