Regulatory Alerts2011-01-25 | Resolución 013/2011Added · Updated
Resolution 013/2011
The Board of Directors of the Central Bank of Bolivia modifies the maximum limit for foreign investments by insurance companies to twelve percent (12%) of their investment resources for the 2011 fiscal year. The resolution requires communication of this decision to the Financial System Supervision Authority to authorize limits within the established maximum. The Presidency and General Management are tasked with executing and ensuring compliance with this resolution.
BOARD RESOLUTION NO. 013/2011 SUBJECT: ECONOMIC POLICY ADVISORY - APPROVES MAXIMUM LIMIT FOR FOREIGN INVESTMENTS BY INSURANCE COMPANIES
HAVING SEEN: 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. The Report from the Economic Policy Advisory BCB-APEC-SSIEE-INF-2011-3 of January 20, 2011. The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2011-21 of January 21, 2011.
CONSIDERING: That Law No. 1883 in its article 35 establishes that the Central Bank of Bolivia (BCB) 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 the resources for investment.
That Supreme Decree No. 25201 in its article 18 determines that the Board of Directors of the BCB 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 to allow the normal functioning of the country's international payments.
That the Economic Policy Advisory in its Technical Report BCB-APEC-SSIEE-INF-2011-3 recommends modifying the percentage from ten percent (10%) to twelve percent (12%) as the maximum limit for foreign investments for Insurance Companies valid for the 2011 fiscal year.
//2. R.D. No. 013/2011 That the Legal Affairs Management, in its Report BCB-GAL-SANO-INF-2011-21, concludes that the proposal to modify the maximum limit of foreign investment for Insurance Companies to 12% during the year 2011 is legally appropriate.
THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES: Article 1.- Modify in the 2011 fiscal year the maximum limit of foreign investment for Insurance Companies to twelve percent (12%) of their investment resources.
Article 2.- Communicate to the Financial System Supervision Authority the preceding decision, 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 25, 2011
Marcelo Zabalaga Estrada
Ernesto Yáñez Aguilar Rolando Marín Ibáñez
Hugo Dorado Araníbar Gustavo Blacutt Alcalá Rafael Boyán Téllez
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