Resolution 011/2009: Approval of Maximum Limit for Foreign Investments by Pension Fund Administrators

BOARD RESOLUTION NO. 011/2009 SUBJECT: ECONOMIC POLICY ADVISORY - APPROVAL OF MAXIMUM LIMIT FOR FOREIGN INVESTMENTS BY PENSION FUND ADMINISTRATORS

VIEWED: Law 1670 of October 31, 1995. Law 1732 of November 29, 1996. Supreme Decree 25958 of October 21, 2000. Technical Report APEC-INEP 002/2009 from the Economic Policy Advisory of January 21, 2009. Report from the Legal Affairs Management SANO 016/2009 of January 23, 2009.

CONSIDERING: That the Pension Law 1732 in its Article 41 confers upon the Board of Directors of the Central Bank of Bolivia the authority to set the maximum limit of investments, made by pension fund administrators (AFPs), in securities of issuers constituted abroad.

That the Pension Law, in its article 40, states that AFPs must invest the resources of the pension funds exclusively in securities and in financial markets authorized by the SPVS. Furthermore, AFPs must maintain, in securities custody entities or securities deposits authorized by the SPVS, at least 95% of the value of the pension funds.

That Supreme Decree D.S. 25958 of October 21, 2000, in its article 19 modifies article 194 of D.S. 24469 (which regulates Law 1732), establishing that the Board of Directors of the BCB must set the maximum limit for foreign investments by AFPs.

That articles 193 and 233 of D.S. 24469 of January 17, 1997, establish that the resources of the Individual Capitalization Fund (FCI), except for high liquidity funds, must be invested in securities and as a minimum 95% of the value of the fund must be maintained in custody entities.

That the Economic Policy Advisory in its Technical Report APEC-INEP 002/2009 recommends reducing the percentage to ten percent (10%) as the maximum limit for foreign investments for Pension Fund Administrators during the 2009 management period.

That the Report from the Legal Affairs Management SANO 016/2009 states that the Board of the Bank has the authority to define the maximum limit for foreign investments by Pension Fund Administrators, in accordance with Article 41 of Law 1732.

THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1.- Set the maximum limit of foreign investment for Pension Fund Administrators at ten percent (10%) of their investment resources during 2009.

Article 2.- Communicate the aforementioned decision to the Superintendence of Pensions, Securities and Insurance, so that it may authorize limits within the maximum established by this Resolution.

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

La Paz, January 28, 2009

---

Gabriel Loza Tellería

---

Gustavo Blacutt Alcalá Hugo Dorado Araníbar

---

Rolando Marín Ibáñez Rafael Boyán Téllez