Regulatory Alerts2004-01-20 | Resolución 012/2004Added · Updated
Resolution 012/2004
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 2004. This resolution mandates that the Superintendence of Pensions, Securities, and Insurance authorize limits within this maximum. The resolution takes effect immediately upon issuance.
BOARD RESOLUTION NO. 012/2004 SUBJECT: ECONOMIC POLICY ADVISORY – APPROVES MAXIMUM LIMIT FOR FOREIGN INVESTMENTS BY INSURANCE COMPANIES.
HAVING REVIEWED: Law 1670 of October 31, 1995. Law 1883 of June 25, 1998. Supreme Decree 25201 of October 16, 1998. Board Resolutions 026/99 of April 13, 1999, 944/2001 of May 29, 2001, and 021/2003 of February 25, 2003. The Report from the Economic Policy Advisory APEC-INEP No. 003/2004 of January 23, 2004. The Report from the Legal Affairs Management SANO No. 016/2004 of January 27, 2004.
CONSIDERING: That Law 1883 on Insurance, in 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 may not exceed fifty percent (50%) of investment resources.
That Supreme Decree 25201, in Article 18, while confirming the authority conferred on the Issuing Entity by Law 1883, determines that the Board of Directors 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 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. 003/2004, recommends setting the percentage of ten percent (10%) during the 2004 fiscal year as the maximum limit for foreign investments by Insurance Companies.
//2. R.D. No. 012/2004
That the Report from the Legal Affairs Management SANO No. 016/2004 states that the Board of the Bank has the authority to define annually the maximum limits for foreign investments by Insurance Companies, in accordance with Article 35 of Law 1883, Article 18 of Supreme Decree 25201, and Articles 44 and 54 subsection q) of Law 1670.
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 2004.
Article 2.- This Resolution shall take effect from the date of issuance.
Article 3.- 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 4.- The Presidency and General Management are charged with the execution and compliance of this Resolution.
La Paz, January 27, 2004
Juan Medinaceli V.
Enrique Ackermann A. José Luis Evia V.
Fernando Paz B. Jaime Apt B.