Resolution 047/98 on Transfer and Delegation of Fiscal Current Accounts

BOARD RESOLUTION NO. 047/98
SUBJECT: CURRENCY AND CREDIT - TRANSFER AND DELEGATION OF FISCAL CURRENT ACCOUNTS.

VIEWING:
Law No. 1670 of October 31, 1995.
Board Resolutions 180/97 and 028/98.
Direct Invitation 006/98 for Correspondence Services by Delegated Administration.
Report No. 09/98 from the Currency and Credit Management dated April 15, 1998.
Legal Advisory Report ALEG No. 141/98 dated April 20, 1998.

CONSIDERING:
That Board Resolution No. 180/97 approves the Legal Reserve Regulation for Institutions of the Financial System.

That Board Resolution No. 028/98 modifies Article 4 of the aforementioned Resolution, establishing that the Legal Reserve Regulation will enter into force on May 4, 1998.

That Report No. 09/98 from the Currency and Credit Management suggests regulating financial operations with fiscal current accounts, because Board Resolution No. 180/97 does not include these accounts in the new legal reserve system. Furthermore, because the awarding of Correspondence Services by Delegated Administration has been postponed, it recommends continuing the operations and accounting records of said accounts until June 30, 1998.

That in the opinion of the Legal Advisory, the Board of the Bank has the authority to regulate financial operations with fiscal current accounts, in accordance with articles 24 and 29 subsection g) of Law 1670 of October 31, 1995.

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THEREFORE

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- All fiscal current accounts opened in the national financial system, authorized by the General Treasury of the Nation, shall be transferred to the Central Bank of Bolivia (BCB) for its administration on June 30, 1998.

Article 2.- The BCB shall delegate, starting from July 1, 1998, the administration of fiscal current accounts, by segment, to Accredited Financial Entities (EFAs) that are awarded as a result of Direct Invitation 006/98 for Correspondence Services by Delegated Administration.

Article 3.- Fiscal current accounts awarded for delegated administration shall be accounted for by EFAs in off-balance-sheet accounts, in accordance with what is established by the Superintendence of Banks and Financial Entities, starting from July 1, 1998.

Article 4.- In the event that an EFA uses financial resources less than the daily deposit flow in operations with fiscal current accounts, the BCB shall debit the corresponding balances from the current accounts that the EFA maintains at the Issuing Institute.

Article 5.- In the event that an EFA uses financial resources greater than the daily deposit flow in operations with fiscal current accounts, the BCB shall credit the corresponding balances on the same day to the current accounts that the EFA maintains at the Issuing Institute.

Article 6.- For the purposes of applying articles 4 and 5, EFAs shall inform the BCB of account movements until 19:00 hours of each business day of operations, for the corresponding accounting record according to Annex 1 of this Resolution.

Article 7.- EFAs operating fiscal current accounts by delegated administration must inform the BCB by 11:00 hours on the next business day following the date of operations, a detailed report of the balances of fiscal current accounts in the format indicated in Annex 2. This report on magnetic media must be sent via letter with authorized signatures of the EFA.

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Article 8.- If the BCB had credited a sum greater than that shown definitively in Annex 2, it will apply a fine equivalent to the national currency repo rate defined by the Open Market Operations Committee, which will be debited daily.

Article 9.- Within the first twenty days of the following month, EFAs must remit to the BCB monthly statements comprising the daily movement of each of the fiscal accounts they administer in delegated form, duly approved by the holder of each account.

Article 10.- In the period between May 4 and June 30, 1998, each EFA will deposit daily into its "Fiscal Funds" account at the BCB one hundred percent (100%) of the balances of the fiscal current accounts. Also, in this case, information reports must be presented according to the formats of annexes 1 and 2.

From May 4, 1998, custody funds for fiscal current accounts are null and void.

Article 11.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, April 20, 1998

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Juan Antonio Morales A.

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