Resolution 013/2010

BOARD RESOLUTION NO. 013/2010

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.
Report APEC-INEP 001/2010 from the Economic Policy Advisory of January 15, 2010.
Report from the Legal Affairs Management SANO 015/2010 of January 18, 2010.

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, carried out by pension fund administrators (AFPs), in securities of issuers constituted abroad.

That the Pension Law, in its Article 40, states that the AFP must invest the resources of the pension funds exclusively in securities and in financial markets authorized by the SPVS. Furthermore, the AFP 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 that at least 95% of the value of the fund must be maintained in custody entities.

That the Economic Policy Advisory in its Technical Report APEC-INEP 001/2010 recommends maintaining the percentage of ten percent (10%) as the maximum limit for foreign investments for Pension Fund Administrators during the 2010 management period.

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That in Report SANO No. 015/2010 it concludes that the proposal to maintain the maximum limit of foreign investment for AFPs at 10% during the year 2010 is legally appropriate.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Maintain in the 2010 management period the maximum limit of foreign investment for Pension Fund Administrators at ten percent (10%) of their investment resources during 2009.

Article 2.- Communicate to the Supervisory and Control Authority for Pensions the aforementioned decision, so that it may authorize limits within the maximum fixed by this Resolution.

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

La Paz, January 19, 2010

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Gabriel Loza Tellería

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Gustavo Blacutt Alcalá Hugo Dorado Araníbar

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Rolando Marín Ibáñez Ernesto Yáñez Aguilar Rafael Boyán Téllez