Resolution 024/98

BOARD RESOLUTION NO. 024/98
SUBJECT: FINANCIAL SYSTEM - AUTHORIZES CASH REFUND UP TO $US.5,000, THROUGH PARTIAL SUBROGATION OF DEPOSITS FORMED IN BIDESA AFTER OCTOBER 31, 1997

HAVING SEEN:
Law 1670 of October 31, 1995.
Board Resolution No. 170/97 of December 13, 1997.
Board Resolution No. 179/97 of December 23, 1997.
Note IL-BIN-211/98 from the Liquidating Superintendent of the International Development Bank (BIDESA) of February 2, 1998.
Board Resolution No. 011/98 of February 10, 1998.
Notes from the Liquidating Superintendent of BIDESA IL-BIN-261/98, IL-BIN-263/98 and IL-BIN-265/98 of March 2, 3 and 4, 1998, respectively.
Report from the Legal Advisory ALEG No. 084/98 of March 10, 1998.
Report from the Financial System Management GSF No. 027/98 of March 10, 1998.

CONSIDERING:
That Article 4 of the aforementioned Resolution No. 170/97 establishes that the Board of Directors of the BCB will expressly authorize the cash refund of up to $us.5,000 of deposits formed in BIDESA after October 31, 1997, after a special review and confirmation by the Superintendency of Banks and Financial Entities (SBEF).

That in compliance with the aforementioned provision, the Liquidating Superintendent of BIDESA designated by the SBEF sent to the BCB, via note IL-BIN-211/98 of February 2, 1998, the detailed statement of fixed-term deposits formed in said financial entity after October 31, 1997. This list establishes three categories: without observations (clarifying that subsequent observations could arise), restricted, and under review.

That according to current legal provisions, it corresponds to the Liquidating Superintendent, in his capacity as Trustee and Legal Representative, to accept or reject the claims of BIDESA and certify the names of the right holders and the balance of the obligations owed.

That the Liquidating Superintendent of BIDESA, through notes IL-BIN-261/98, IL-BIN-263/98 and IL-BIN-265/98, complements the review carried out in the detail sent on February 2, 1998, with a new qualified list "without observations."

That in the opinion of the Legal Advisory and the Financial System Management, it corresponds to authorize the subrogation of the deposits listed in the aforementioned complementary list, given that compliance with Article 4 of Board Resolution No. 170/97 has been met.

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

Article 1.- Authorize the cash refund of up to $us.5,000 of fixed-term deposits formed in BIDESA after October 31, 1997, which after the special review carried out by the Liquidating Superintendent have been classified as "without observation (S/O)" by said authority, in the complementary list attached to this Resolution.

Such refund must be carried out in strict adherence to the norms, criteria, limits and procedures established in the BCB Board Resolution No. 170/97, which were applied to deposits formed prior to October 31, 1997.

Article 2.- If after the authorized refund in the preceding Article, subsequent observations arise regarding the legitimacy, condition or quality of the refunded deposits, it will correspond to the SBEF to initiate the pertinent legal actions for their respective recovery.

Article 3.- The BCB will present its claim for extra-bankruptcy credits, for the total amounts effectively delivered to the SBEF, for the subrogation of the rights of the depositors of BIDESA in liquidation.

Article 4.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, March 10, 1998

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Juan Antonio Morales A.

________________ _______________ _________________ Armando Pinell S. Jaime Ponce G. Juan Medinacelli V.

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Fernando Campero P. Juan Pablo Zegarra A.