Board Resolution No. 062/2003

BOARD RESOLUTION NO. 062/2003

SUBJECT: FINANCIAL ENTITIES MANAGEMENT - EXTENDS THE VALIDITY OF CHAPTERS I AND II OF THE TRANSITIONAL REGULATIONS FOR PORTFOLIO ADMINISTRATION UNDER LAW 2297.

HAVING SEEN:
Law 1670 of October 31, 1995.
Law 2297 of December 20, 2001.
Law 2462 of May 2, 2003.
Supreme Decree 26575 of April 3, 2002.
Board Resolution No. 044/2002 of May 14, 2002.
The Report from the Financial Entities and Legal Affairs Management SAJU/GEF No. 047-158/2003 of May 26, 2003.
The Note from the General Management GGRL.I. No. 431/2003, of June 6, 2003.

CONSIDERING:

That Article 1, subsection a) of Law 2297, on "Strengthening of Financial Supervision Regulations," authorized the restructuring of portfolios of financial entities in liquidation and established a term of 180 days for the implementation of said measure. Likewise, in its Article 20, it incorporated into said restructuring the non-linked credit portfolio transferred in payment to the BCB and FONDESIF originating from the forced sale of financial intermediation entities.

That in compliance with the aforementioned norm, the Board of Directors of the BCB issued Board Resolutions 044/2002 and 048/2002, approving the regulations within the framework of what is provided by Law 2297 for both the portfolio of the former BBA and for

//2. B.R. No. 062/2003 the portfolio of financial entities in liquidation and the former INALPRE, whose Article 2 of both regulations determined their temporal validity subject to the date of the respective publication of notification to borrowers.

That the dates to access the benefits of portfolio restructuring administered by Banco Mercantil S.A. and the portfolio administered by the Central Bank of Bolivia expired on November 15, 2002, and December 6, 2002, respectively.

That Law 2462 promulgated by the President of the Republic on May 2, 2003, provides in its sole article, the extension of the validity of Article 1, subsection a) of Law 2297, for portfolio restructuring for 180 days to be counted from the promulgation of said law.

That the Financial Entities Management and the Legal Affairs Management, in their technical legal report SAJU GEF 047/158/2003, state that the extension of Art. 1 subsection a) of Law 2297 provided by Law 2462 promulgated on May 2 of last year, must be applied by the BCB, through Board Resolution under the support of Article 54 subsection j) of Law 1670.

That the General Management through Note GGRL.I. No. 432/2003 recommends to the Board the approval of the modifications suggested by the Legal Affairs and Financial Entities Managements.

THEREFORE:

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Extend the validity of Chapters I and II of the "Transitional Portfolio Administration Regulation" within the framework of Law 2297 approved by Board Resolution No. 044/202 of April 30, 2002, for a term of 180 days from the promulgation of Law 2462, that is until October 29 of the year 2003, only regarding the benefit of restructuring.

Article 2.- Extend the validity of Chapters I and II of the "Transitional Portfolio Administration Regulation" within the framework of Law 2297 approved by Board Resolution No. 048/2002 of May 14, 2002, for a term of 180 days from the promulgation of Law 2462, that is until October 29 of the year 2003, only regarding the benefit of restructuring.

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Article 3.- The General Management and the Financial Entities Management are tasked with the execution and compliance of this Resolution.

La Paz, June 6, 2003.

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Juan Antonio Morales A.

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Juan Medinaceli V. Armando Méndez M.

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Enrique Ackermann A.