Resolution 012/2009

BOARD OF DIRECTORS RESOLUTION NO. 012/2009 SUBJECT: ECONOMIC POLICY ADVISORY - APPROVAL OF MAXIMUM LIMIT FOR FOREIGN INVESTMENTS BY INSURANCE COMPANIES

VIEWED: Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia. Law No. 1883 of June 25, 1998, on Insurance. Supreme Decree No. 25201 of October 16, 1998, which approves the Regulation of Law No. 1883. Technical Report APEC-INEP 003/2009 of the Economic Policy Advisory of January 23, 2009. Report from the Legal Affairs Management SANO 015/2009 of January 23, 2009.

CONSIDERING: That 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 may not be greater than fifty percent (50%) of the investment resources.

That Supreme Decree No. 25201 in its article 18 determines that the Board of Directors of the Central Bank of Bolivia must annually set the maximum limit for foreign investments by Insurance Companies.

That Law No. 1670 in its articles 6 and 14 establishes that the Issuing Entity must execute monetary policy and regulate the amount of money and the volume of credit according to its monetary program, and also ensure the strengthening of international reserves so as to allow the normal functioning of the country's international payments.

That the Economic Policy Advisory in its Technical Report APEC-INEP 003/2009 recommends reducing the percentage to ten percent (10%) as the maximum limit for foreign investments for Insurance Companies to be in effect during the 2009 fiscal year.

That the Report from the Legal Affairs Management SANO 015/2009 states that the Board of Directors of the Bank has the authority to define annually the maximum limit for foreign investments by Insurance Companies, in accordance with Article 35 of Law No. 1883, article 18 of Supreme Decree No. 25201, and articles 44 and 54 subsections a) and q) of Law No. 1670.

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

Article 1.- Reduce for the 2009 fiscal year the maximum limit of foreign investment for Insurance Companies to ten percent (10%) of their investment resources.

Article 2.- Communicate the aforementioned decision to the Superintendence of Pensions, Values and Insurance, so that it may authorize limits within the maximum fixed 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

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Gabriel Loza Tellería

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Gustavo Blacutt Alcalá Hugo Dorado Araníbar

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Rolando Marín Ibáñez Rafael Boyán Téllez