Regulatory Alerts2005-01-11 | Resolución 009/2005Added · Updated
Resolution 009/2005
The Board of Directors of the Central Bank of Bolivia sets the maximum limit for foreign investments by insurance companies at ten percent (10%) of their investment resources for the year 2005. This resolution mandates that the Superintendence of Pensions, Securities, and Insurance authorize limits within this maximum cap. The regulation enters into force on the date of issuance, with the Presidency and General Management responsible for its execution.
BOARD RESOLUTION NO. 009/2005 SUBJECT: ECONOMIC POLICY ADVISORY – APPROVES MAXIMUM LIMIT FOR FOREIGN INVESTMENTS BY INSURANCE COMPANIES.
VIEWED: Law No. 1670 of October 31, 1995. Law No. 1883 of June 25, 1998. Supreme Decree No. 25201 of October 16, 1998. Board Resolutions 026/99 of April 13, 1999, 044/2001 of May 29, 2001, 021/2003 of February 25, 2003, and 012/2004 of January 27, 2004. Report from the Economic Policy Advisory APEC-INEP No. 001/2005 of January 6, 2005. Report from the Legal Affairs Management SANO No. 007/2005 of January 10, 2005.
CONSIDERING: That Insurance Law No. 1883 in its Article 35 establishes that the Central Bank of Bolivia will periodically set the maximum limit for investments by Insurance Companies in securities of issuers constituted abroad, which cannot exceed fifty percent (50%) of the investment resources.
That Supreme Decree No. 25201 in its Article 18, while confirming the power conferred on the Issuing Entity by Law 1883, determines that the Board of the BCB must annually set the maximum limit for foreign investments by Insurance Companies through an express Resolution.
That Articles 6 and 14 of Law No. 1670 establish that the Central Bank of Bolivia must ensure compliance with its monetary program and safeguard the strengthening of International Reserves to allow for the normal functioning of Bolivia's international payments.
That the Economic Policy Advisory in its Report APEC-INEP No. 001/2005 recommends setting the percentage of ten percent (10%) during the 2005 management period as the maximum limit for foreign investments by Insurance Companies.
That the Report from the Legal Affairs Management SANO No. 007/2005 establishes that the Draft Board Resolution setting the maximum limit for foreign investments by insurance companies complies with the provisions of the current legal framework, and therefore the Board of the Issuing Entity should consider its approval.
THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Set the maximum limit for foreign investment by Insurance Companies at ten percent (10%) of their investment resources during the year 2005.
Article 2.- This Resolution shall enter into force from the date of issuance.
Article 3.- Communicate the foregoing decision to the Superintendence of Pensions, Securities, and Insurance, so that it may authorize limits within the maximum set by this Resolution.
Article 4.- The Presidency and General Management are charged with the execution and compliance of this Resolution.
La Paz, January 18, 2005
Juan Antonio Morales A.
Juan Medinaceli V. Enrique Ackermann A.
Fernando Paz B. Jaime Apt B.
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