Regulatory Alerts2003-02-25 | Resolución 021/2003Added · Updated
Resolution 021/2003
The Board of Directors of the Central Bank of Bolivia sets the maximum limit for foreign investments by insurance companies at ten percent (10%) of their investment resources for the year 2003. This resolution takes effect immediately and requires communication of this decision to the National Council of Financial Policy 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. 021/2003 SUBJECT: ECONOMIC POLICY ADVISORY – APPROVES MAXIMUM LIMIT FOR FOREIGN INVESTMENTS BY INSURANCE COMPANIES.
HAVING REVIEWED: Law 1670 of October 31, 1995. Law 1883 of June 25, 1998. Supreme Decree 25201 of October 16, 1998. Report from the Economic Policy Advisory APEC-INEP No. 005/2003 of February 17, 2003. Report from the Legal Affairs Management SANO No. 028/2003 of February 24, 2003.
CONSIDERING: That Insurance Law 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 exceed fifty percent (50%) of the resources for investment.
That Supreme Decree 25201 in its Article 18, while confirming the authority conferred on the Issuing Entity by Law 1883, determines that the Board of Directors of the BCB must annually set the maximum limit for foreign investments by Insurance Companies through an express Resolution, with the authority to establish limits within these maximums being vested in the Committee for Prudential Financial Standards (CONFIP).
That Articles 6 and 14 of Law 1670 establish that the Central Bank of Bolivia must ensure compliance with its monetary program, and safeguard the strengthening of International Reserves to allow for the normal functioning of Bolivia's international payments.
//2. R.D. No. 021/2002 That the Economic Policy Advisory in its Report APEC-INEP No. 005/2003, recommends setting the percentage of ten percent (10%) during the 2003 management period, as the maximum limit for foreign investments for Insurance Companies.
That the Report from the Legal Affairs Management SANO No. 028/2003, states that the Board of the Bank has the authority to define annually the maximum limits for foreign investments by Insurance Companies, in accordance with Article 35 of Law 1883, Article 18 of Supreme Decree 25201, and Articles 44 and 54 subsection q) of Law 1670.
THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Set the maximum limit of foreign investment for Insurance Companies at ten percent (10%) of their investment resources during the year 2003.
Article 2.- This Resolution shall enter into force from the date of issuance.
Article 3.- Communicate the aforementioned decision to the National Council of Financial Policy so that it may authorize limits within the maximum established by this Resolution.
Article 4.- The Presidency and General Management are charged with the execution and compliance of this Resolution.
La Paz, February 25, 2003
Juan Antonio Morales A.
Juan Medinaceli V. Armando Méndez M.
Enrique Ackermann A.
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