Regulatory Alerts2003-01-21 | Resolución 008/2003Added · Updated
Resolution 008/2003
The Board of Directors of the Central Bank of Bolivia extends the validity of the debt forgiveness benefit for small farmers and peasant producers until July 31, 2003. This measure applies to public resource credits with outstanding capital balances exceeding $5,000 USD, requiring beneficiaries to pay the excess amount in cash to trigger the forgiveness of the $5,000 principal, all accrued interest, penalties, and administrative costs. The Central Bank of Bolivia assumes responsibility for judicial costs, while the General Treasury reimburses the forgiven principal and interest to the Central Bank using bonds one month after the regulation's expiration.
BOARD RESOLUTION NO. 008/2003
SUBJECT: FINANCIAL ENTITIES MANAGEMENT – APPROVES EXTENSION OF THE VALIDITY OF CHAPTER V OF THE TRANSITORY PORTFOLIO REGULATION OF THE BCB WITHIN THE FRAMEWORK OF LAW 2297.
HAVING SEEN:
Law 1670 of October 31, 1995.
Law 2297 of December 20, 2001, on Strengthening Financial Norms and Supervision, amending Law 2201 of May 18, 2001.
Supreme Decree 26575 of April 3, 2002, regulating Law 2297.
Supreme Decree 26865 of December 14, 2002.
Board Resolution No. 048/2002 of May 14, 2002.
Report from the Legal Affairs Management and Financial Entities Management GEF-GAL No. 002/2003 of January 9, 2003.
CONSIDERING:
That Article 17 of Law 2297 complements Article 2 of Law 2201, establishing that credits generated with public resources, whose outstanding capital balances exceed five thousand United States dollars ($US 5,000), may benefit from the forgiveness provided prior to the cash payment of the capital debt exceeding the amount of the forgiveness.
That Chapter IV, Article 14 of Supreme Decree 26575 regulates the cancellation by the General Treasury of the Nation with bonds in favor of the Central Bank of Bolivia for the forgiveness operations indicated in Chapter II of the aforementioned Decree.
That the Sole Article of Supreme Decree 26865 extends the benefits of Article 17 of Law 2297 until July 31, 2003, exclusively in favor of small producers and peasants, groups, associations, and peasant cooperatives duly individualized.
//2. B.D. No. 008/2003
That the validity of the forgiveness benefit established in Board Resolution No. 048/2002, which approves the Transitory Portfolio Regulation within the framework of Law 2297, expired on December 31, 2002.
That the Financial Entities Management and the Legal Affairs Management, in their Report GEF-GAL No. 002/2003, recommend, within the framework of Supreme Decree 26865, the need to issue a new transitory regulation to govern the extension of the payment deadline with the forgiveness benefits for debts established by Article 17 of Law 2297.
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:
Article 1.- Extend the deadline to qualify for the forgiveness benefit that was stipulated in the last paragraph of Article 2 and item III of Article 27 of the BCB Transitory Portfolio Administration Regulation, within the Framework of Law 2297, in compliance with what is provided for in Supreme Decree 26865.
This benefit is exclusively applicable to borrowers with credits generated with public resources destined for small farmers and peasant producers, whose outstanding capital balances exceed five thousand United States dollars ($US 5,000), who may benefit from the forgiveness of said amount, prior to the cash payment of the capital debt exceeding the amount of the forgiveness, according to the following procedure:
I. Beneficiaries will pay in cash and in a single payment the difference resulting between the total amount owed in capital and the amount to be forgiven of five thousand 00/100 United States dollars ($US 5,000).
II. Upon completion of the payment, the forgiveness will be applied to the five thousand 00/100 United States dollars ($US 5,000) and to all current interest, penalties, and other charges, as well as to administrative expenses and judicial costs of the total obligation.
III. The established forgiveness of judicial costs will be assumed by the Central Bank of Bolivia.
Article 2.- The Financial Entities Management, through the Sub-Management of Recovery and Realization of Assets, will be responsible for processing forgiveness requests, and may require the services necessary from other areas of the BCB.
//3. B.D. No. 008/2003
Article 3.- The amounts forgiven in capital and current interest will be reimbursed by the General Treasury of the Nation with bonds in favor of the Central Bank of Bolivia. The Financial Entities Management will determine said amounts for collection from the GTN one month after the expiration of the validity of this Regulation.
Article 4.- The extension of the forgiveness benefit is transitory in nature, and will be valid from January 1, 2003, until July 31, 2003.
Article 5.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.
La Paz, January 21, 2003
Juan Antonio Morales A.
Juan Medinaceli V. Armando Méndez M.
Enrique Ackermann A.
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