Resolution 016/2012 - Approval of Maximum Limit for Foreign Investments by Insurance Companies

BOARD OF DIRECTORS RESOLUTION No. 016/2012
SUBJECT: ECONOMIC POLICY ADVISORY - APPROVAL OF MAXIMUM LIMIT FOR FOREIGN INVESTMENTS BY INSURANCE COMPANIES.

VIEWED:
The Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia.
The 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.
The Report from the Economic Policy Advisory BCB-APEC-SSIEE-INF-2012-2 of February 1, 2012.
The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2012-36 of February 3, 2012.

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 cannot 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 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 so as to allow the normal functioning of the country's international payments.

That the Economic Policy Advisory in its Technical Report BCB-APEC-SSIEE-INF-2012-2, recommends modifying the percentage from twelve percent (12%) to ten percent (10%) as the maximum limit for foreign investments for Insurance Companies valid for the 2012 management period.

//2. R.D. No. 016/2012
That the Legal Affairs Management, in its Report BCB-GAL-SANO-INF-2012-36, concludes that the proposal to modify the maximum limit of foreign investment for Insurance Companies to 10% during the year 2012 is legally appropriate.

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

Article 1.- Modify in the 2012 management period the maximum limit of foreign investment for Insurance Companies to ten percent (10%) of their investment resources.

Article 2.- Communicate to the Pension and Insurance Supervisory Authority (APS) the aforementioned decision, so that it may authorize limits within the maximum established by this Resolution.

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

La Paz, February 7, 2012

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Rafael Boyán Téllez

_________________________ _________________________ Hugo Dorado Araníbar Rolando Marín Ibáñez _________________________ Ernesto Yáñez Aguilar