Resolution 011/98

BOARD RESOLUTION NO. 011/98

SUBJECT: FINANCIAL SYSTEM - AUTHORIZES RETURN, THROUGH PARTIAL SUBROGATION, OF DEPOSITS FORMED IN BIDESA AFTER OCTOBER 31, 1997, IN ACCORDANCE WITH THE NORMS, PROCEDURES, AND LIMITS ESTABLISHED IN THE BOARD RESOLUTION OF THE BCB NO. 170/97.

HAVING SEEN:

Law 1670 of October 31, 1995.

Board Resolution of the BCB No. 170/97 of December 13, 1997.

Board Resolution of the BCB No. 179/97 of December 23, 1997.

Note IL-BIN-211/98 from the Liquidating Superintendent of the International Development Bank dated February 2, 1998.

Report from the Legal Advisory ALEG No. 048/98 dated February 10, 1998.

Report from the Financial System Management GSF No. 014/98 dated February 10, 1998.

CONSIDERING:

That Article 4 of the aforementioned Resolution No. 170/97 establishes that the Board of Directors of the BCB will expressly authorize the return of deposits formed in BIDESA after October 31, 1997, after a special review and confirmation by the Banking and Financial Entities Superintendence (SBEF).

That in compliance with the aforementioned provision, the Liquidating Superintendent of BIDESA designated by the SBEF has forwarded to the BCB, via note IL-BIN-211/98 of February 2, 1998, the detailed statement of fixed-term deposits formed in said financial entity after October 31, 1997. This list establishes three categories: without observations (clarifying that subsequent observations could arise), restricted, and under review.

That according to current legal provisions, it corresponds to the Liquidating Superintendent, in his capacity as Trustee and Legal Representative, to accept or reject the claims of BIDESA and certify the names of the right holders and the balance of the obligations owed.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Authorize the return of fixed-term deposits formed in BIDESA after October 31, 1997, which after the special review carried out by the Liquidating Superintendent, have been classified as "without observation (S/O)" by said authority in the attached statement to this Resolution, sent to the BCB via note IL-BIN-211/98 of February 2, 1998. This return must be carried out in strict adherence to the norms, criteria, limits, and procedures established in the Board Resolution of the BCB No. 170/97, which were applied to deposits formed prior to October 31, 1997.

Article 2.- If, subsequent to the return authorized in the preceding Article, subsequent observations arise regarding the legitimacy, condition, or quality of the returned deposits, it will correspond to the SBEF to initiate the pertinent legal actions for their respective recovery.

Article 3.- The BCB will present its claim for extra-bankruptcy credits, for the total amounts effectively delivered to the SBEF, for the subrogation of the rights of the depositors of BIDESA in liquidation.

Article 4.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

10.II.98

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Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G.

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Juan Medinacelli V. Fernando Campero P.