Resolution 028/98 Postponing the Effective Date of the Legal Reserve Regulation for Financial System Institutions

BOARD RESOLUTION NO. 028/98
SUBJECT: ECONOMIC POLICY ADVISORY - POSTPONING UNTIL MAY 4, 1998, THE EFFECTIVE DATE OF THE LEGAL RESERVE REGULATION FOR INSTITUTIONS OF THE FINANCIAL SYSTEM.

HAVING SEEN:
Law No. 1670 of October 31, 1995.
Board Resolution of the Central Bank of Bolivia (BCB) No. 180/97 of December 23, 1997, which approves the Legal Reserve Regulation for Institutions of the Financial System. Note from the Superintendence of Banks and Financial Entities SB/IEN, Document 11742 of March 12, 1998. Report from the Economic Policy Advisory APEC/ARINV No. 48/98 of March 17, 1998. Report from the Legal Advisory ALEG No. 100/98 of March 17, 1998.

CONSIDERING:
That the Superintendence of Banks has requested some clarifications and inquiries regarding the Legal Reserve Regulation for Institutions of the Financial System, which will prevent it from timely concluding the drafting of the corresponding control norms.

That the Economic Policy Advisory recommends postponing the entry into force of said legal instrument, in order to allow the adequate design of the operational procedures for its functioning, indicating as the appropriate date for the start of its application May 4, 1998, and, as a consequence of the foregoing, modifying the schedules established in Article 7 of the respective Regulation.

That in the opinion of the Legal Advisory, the Board has full powers to modify and interpret the regulations issued by the Bank, in accordance with the attributes granted to it by Article 54 item o) of Law 1670.

THEREFORE,

THE BOARD OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:

Article 1.- Modify Article 4 of Board Resolution No. 180/97 of December 23, 1997, in the following terms: “The Legal Reserve Regulation will enter into force on May 4, 1998.”

Article 2.- Modify the schedules established in Article 7 of the Legal Reserve Regulation for Institutions of the Financial System, as follows:

SCHEDULE FOR BANKING FINANCIAL ENTITIES
From: Legal Reserve Rates in Cash | Legal Reserve Rates in Securities May 4, 1998: 5% | 7% June 29, 1998: 4% | 8% August 24, 1998: 3% | 9% October 19, 1998: 2% | 10%

SCHEDULE FOR NON-BANKING FINANCIAL ENTITIES
From: Legal Reserve Rates in Cash | Legal Reserve Rates in Securities May 4, 1998: 5% | 1.5% June 1, 1998: 4% | 3.0% June 29, 1998: 3% | 4.5% July 27, 1998: 2% | 6.0% August 24, 1998: 2% | 6.5% September 21, 1998: 2% | 7.0% October 19, 1998: 2% | 7.5% November 16, 1998: 2% | 8.0% December 14, 1998: 2% | 8.5% January 11, 1999: 2% | 9.0% February 8, 1999: 2% | 10.0%

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

La Paz, March 17, 1998

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Juan Antonio Morales A.

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

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Fernando Campero P. Juan Pablo Zegarra A.