Regulatory Alerts1998-12-17 | Resolución 109/98Added · Updated
Board Resolution No. 109/98
The Board of Directors of the Central Bank of Bolivia authorizes the partial subrogation of deposits held at the liquidated Banco Internacional de Desarrollo S.A. (BIDESA) that were established after October 31, 1997. Specifically, it permits cash payments up to US$5,000 for fixed-term deposits and the issuance of Certificates of Deposit (CDDs) for fixed-term and current accounts where balance variations exceeded US$100,000 between October 31 and December 12, 1997. This authorization applies only to deposits previously reviewed and classified as "without observation" by the Liquidator. The Superintendency of Banks and Financial Entities retains the authority to initiate legal actions for recovery if subsequent observations arise regarding the legitimacy of these returned deposits.
BOARD RESOLUTION NO. 109/98
SUBJECT: FINANCIAL SYSTEM – AUTHORIZATION NO. 8 FOR PARTIAL SUBROGATION UP TO US$5,000 IN CASH AND FOR LARGER SUMS VIA ISSUANCE OF CDDs FOR DEPOSITS CONSTITUTED AT BIDESA AFTER OCTOBER 31, 1997.
HAVING SEEN:
Law 1670 of October 31, 1995 of the Central Bank of Bolivia.
Board Resolutions of the BCB No. 170/97 and No. 179/97 of December 13 and 23, 1997, respectively.
Board Resolutions of the BCB No. 020/98 and No. 033/98 of March 3 and 31, 1998, respectively.
Note IL-BIN No. 1096/98 from the Liquidator Superintendent of the Banco Internacional de Desarrollo S.A. in liquidation, dated December 2, 1998.
Note IL-BIN-1142/98 from the Liquidator Superintendent of BIDESA dated December 14, 1998.
Reports from the Legal Advisory Office ALEG No. 407/98 of December 11, 1998 and ALEG No. 418/98 of December 16, 1998.
Report from the Financial System Management SEL-DEL No. 284/98 of December 15, 1998.
CONSIDERING:
That Article 4 of the aforementioned Resolution No. 170/97 establishes that the BCB Board of Directors will expressly authorize the return of deposits constituted at BIDESA after October 31, 1997, following a special review and confirmation by the Superintendency of Banks and Financial Entities (SBEF).
That Article 1 of Board Resolution No. 020/98, complemented and clarified by Board Resolution No. 033/98, approves the partial subrogation of deposits greater than US$5,000 constituted at BIDESA prior to October 31, 1997, which also extends to checking and savings accounts effectively constituted at said financial entity until December 12, 1997, provided they meet the following conditions:
a) If the balance on 12/12/97 is less than or equal to the balance on 31/10/97. b) If the difference between the balance on 12/12/97 and the balance on 31/10/97 is less than US$100,000.
For balance variations greater than US$100,000, Article 3 of Board Resolution No. 020/98 applies.
That Article 3 of Resolution No. 020/98 establishes that the BCB Board of Directors will expressly authorize the subrogation of deposits constituted at BIDESA after October 31, 1997, following a special review and "without observation (S/O)" rating by the Liquidator Superintendent.
That in compliance with the aforementioned provisions, the Liquidator Superintendent of BIDESA appointed by the SBEF requested authorization from the BCB, through notes IL-BIN-1096/98 of December 2, 1998 and IL-BIN-1142/98 of December 14, 1998, for subrogation through the issuance of CDDs for five fixed-term deposits constituted after October 31, 1997 and one checking account, whose variations during the period between October 31 and December 12, 1997, exceeded US$100,000.
That according to current legal provisions, it corresponds to the Liquidator Superintendent, in their capacity as Trustee and Legal Representative, to accept or reject the claims of BIDESA and certify the names of the right holders and the balance of the obligations owed.
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:
Article 1.- Authorize the partial subrogation, through cash payment up to US$5,000, of the fixed-term deposits constituted at BIDESA after October 31, 1997, only for those cases that after the special review carried out by the Liquidator Superintendent, have been classified "without observation (S/O)" by said authority, under their responsibility, in the attached statement that forms part of this Resolution, sent to the BCB through notes IL-BIN No. 1096/98 of December 2, 1998 and IL-BIN-1142/98 of December 14, 1998.
Such return must be carried out in strict adherence to the rules, criteria, limits, and procedures established in the Board Resolutions of the BCB 170/97, 179/97, 020/98, and 033/98.
Article 2.- Authorize the subrogation, through the issuance of CDDs, of the five fixed-term deposits constituted at BIDESA after October 31, 1997 and one checking account deposit whose variations between October 31 and December 12, 1997, exceeded US$100,000, which have been classified "without observation (S/O)" by the Liquidator Superintendent, under their responsibility, in the attached statement that forms part of this Resolution, sent to the BCB through notes IL-BIN No. 1096/98 of December 2, 1998 and IL-BIN-1142/98 of December 14, 1998.
Such subrogation must be carried out in strict adherence to the rules, criteria, limits, and procedures established in the Board Resolutions of the BCB 170/97, 179/97, 020/98, and 033/98.
Article 3.- If subsequent observations arise regarding the legitimacy, condition, or quality of the returned deposits after the return authorized in the preceding articles, it will correspond to the SBEF to initiate the pertinent legal actions for their respective recovery.
Article 4.- The Presidency and General Management are charged with the execution and compliance of this Resolution.
La Paz, December 17, 1998
Juan Antonio Morales A.
__________________ Armando Pinell S. Jaime Ponce G. Fernando Campero
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