Board Resolution No. 034/98

BOARD RESOLUTION NO. 034/98 SUBJECT: CURRENCY AND CREDIT - MODIFIES ARTICLE 5 OF THE REGULATION FOR OPERATIONS WITH CERTIFICATES OF DEPOSIT REFUND (CDDs) ISSUED BY THE BCB FOR THE PARTIAL SUBROGATION OF DEPOSITS FROM BIDESA IN LIQUIDATION.

VIEWING: Law No. 1670 of October 31, 1995. Board Resolutions 170/97, 020/98, and 033/98. Board Resolution No. 021/98 of March 10, 1998, which approves the Regulation for Operations with Certificates of Deposit Refund (CDDs) Issued by the BCB for the Partial Subrogation of Deposits from BIDESA in Liquidation. The Report from the Financial System Management GSF 041/98 of March 31, 1998. The Report from the Legal Advisory ALEG No. 116/98 of March 31, 1998.

CONSIDERING: That the Financial System Management recommends, for the convenient application of the mechanisms established by the BCB for the subrogation of deposits greater than $us.5,000 from BIDESA in liquidation and the issuance of the corresponding CDDs, modifying Article 5 of the Regulation approved by Board Resolution No. 021/98 of March 10, 1998.

That in the opinion of the Legal Advisory, the Board of the Bank can modify and interpret the Regulations of the Institution in accordance with the attribution granted to it by Article 54, item o) of Law 1670 of October 31, 1995.

THEREFORE, THE BOARD OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1.- Modify Article 5 of the Regulation for Operations with Certificates of Deposit Refund (CDDs) Issued by the BCB for the Partial Subrogation of Deposits from BIDESA in Liquidation, in the following terms:

SAYS Article 5 (Issuance of the CDDs).

• The Financial System Management (GSF) of the BCB will deliver to the Superintendency of Banks and Financial Entities (SBEF) the necessary quantities of blank CDDs to be filled out by the Liquidating Intendant, under their full responsibility. Once the CDDs are duly filled out, the BCB will proceed with their issuance with a nominal value equal to the value of the capital in the checking, savings, or fixed-term deposit specified in the assignment for restitution and payment that the depositor makes, subrogating their rights in favor of the BCB, a document that will be attached to the CDDs by the SBEF.

The GSF of the BCB will be responsible for the accounting registration and control of the issued CDDs, as well as the coordination and exchange of information with the SBEF.

SHOULD SAY “Article 5 (Issuance of the CDDs).

• The Superintendency of Banks and Financial Entities, based on the photocopies of the deposit document and identification delivered by the depositors, the document of “Assignment of Rights for Restitution and Payment with Certificates of Deposit Refund” and the corresponding balance certification, will issue under their responsibility an order for the issuance of CDDs that specifies at least, the name of the beneficiary, ID Card Number, value, district, and term, sending the respective documentation to the BCB.

The GSF will review that the nominal value of the CDD issuance order is equal to the value of the capital in the checking, savings, or fixed-term deposit specified in the document “Assignment of Rights for Restitution and Payment with Certificates of Deposit Refund” that the depositor makes, subrogating their rights in favor of the BCB, and will remit the documentation to the Currency and Credit Management for the respective issuance of the CDDs.

Once the CDDs are issued, the GSF will send them to the SBEF for delivery to the beneficiary in exchange for the original deposit document, duly endorsed in favor of the BCB.

The GSF will be responsible for the control and collection of credits and its coordination with the SBEF and the Currency and Credit Management for the accounting registration of the issuance of CDDs.”

Article 2.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, March 31, 1998

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Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G. Juan Medinacelli V.

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Fernando Campero P. Juan Pablo Zegarra A.