Regulatory Alerts2010-01-19 | Resolución 014/2010Added · Updated
Resolution 014/2010 - Approval of Maximum Limit for Foreign Investments by Insurance Companies
The Board of Directors of the Central Bank of Bolivia maintains the maximum limit for foreign investments by insurance companies at ten percent (10%) of their investment resources for the 2010 fiscal year. The resolution requires the General Management and Presidency to ensure its execution and mandates communication to the Financial System Supervisory Authority to authorize limits within this maximum. This decision applies specifically to insurance companies operating under the regulatory framework of Bolivia.
BOARD RESOLUTION NO. 014/2010
SUBJECT: ECONOMIC POLICY ADVISORY - APPROVAL OF MAXIMUM LIMIT FOR FOREIGN INVESTMENTS BY INSURANCE COMPANIES
SEEING:
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 Regulations of Law No. 1883.
Report from the Economic Policy Advisory APEC-INEP No. 002/2010 of January 15, 2010.
Report from the Legal Affairs Management SANO No. 014/2010 of January 18, 2010.
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 resources for investment.
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 002/2010 recommends maintaining the percentage at ten percent (10%) as the maximum limit for foreign investments for Insurance Companies to be in effect during the 2010 management period.
That in Report SANO No. 014/2010 it concludes that the proposal to maintain the maximum limit of foreign investment for Insurance Companies at 10% during the year 2010 is legally appropriate.
//2. R.D. No. 014/2010
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 Insurance Companies at ten percent (10%) of their investment resources.
Article 2.- Communicate the aforementioned decision to the Financial System Supervisory Authority, so that it may authorize the limits within the maximum fixed by this Resolution.
Article 3.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.
La Paz, January 19, 2010
Gabriel Loza Tellería
Gustavo Blacutt Alcalá Hugo Dorado Araníbar
Rolando Marín Ibáñez Ernesto Yáñez Aguilar Rafael Boyán Téllez