Board Resolution No. 030/2013 Approving Maximum Limit for Foreign Investments by Insurance Companies

BOARD RESOLUTION NO. 030/2013
SUBJECT: ECONOMIC POLICY ADVISORY – APPROVAL OF MAXIMUM LIMIT FOR FOREIGN INVESTMENTS BY INSURANCE COMPANIES.

VIEWED:
The Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia.
The Law No. 1883 of June 25, 1998, on Insurance.
Supreme Decree No. 25201 of October 16, 1998, which approves the Regulations of Law No. 1883.
The Report from the Economic Policy Advisory BCB-APEC-SIE-INF-2013-16 of March 20, 2013.
The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2013-91 of March 22, 2013.

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 resources for investment.

That Supreme Decree No. 25201 in its article 18 determines that the Board of Directors of the BCB must set annually 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-2013-16 recommends modifying the percentage from ten percent (10%) to twelve percent (12%) as the maximum limit for foreign investments for Insurance Companies valid for the 2013 fiscal year.

//2. B.R. No. 030/2013
That the Legal Affairs Management, in its Report BCB-GAL-SANO-INF-2013-22 concludes that the proposal to modify the maximum limit of foreign investment for Insurance Companies to 12% during the year 2013 is legally appropriate.

THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Modify in the 2013 fiscal year the maximum limit of foreign investment for Insurance Companies to thirty percent (30%) of their investment resources.

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

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

La Paz, March 26, 2013

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Marcelo Zabalaga Estrada
_______________________ _______________________ Gustavo Blacutt Alcalá Abraham Pérez Alandia _______________________ Hugo Dorado Araníbar Rafael Boyán Téllez Rolando Marín Ibáñez