Resolution 024/99: Partial Subrogation of Deposits in BIDESA

BOARD RESOLUTION NO. 024/99
SUBJECT: FINANCIAL SYSTEM – AUTHORIZATION NO. 9 FOR PARTIAL SUBROGATION UP TO $US.5,000.- IN CASH AND FOR LARGER SUMS THROUGH THE ISSUANCE OF CDDs OF DEPOSITS CONSTITUTED IN BIDESA AFTER OCTOBER 31, 1997.

HAVING SEEN:
Law No. 1670 of the Central Bank of Bolivia (BCB) of October 31, 1995.
Board Resolution of the BCB No. 170/97 of December 13, 1997.
Board Resolution of the BCB No. 179/97 of December 23, 1997.
Board Resolution of the BCB No. 020/98 of March 3, 1998.
Board Resolution of the BCB No. 033/98 of March 31, 1998.
Letters SEL-DEL No. E-1198/98 and 023/99 from the Sub-Management of Financial Entities in Liquidation of the Central Bank of Bolivia, dated November 26, 1998, and January 12, 1999, respectively.
Notes IL-BIN No. 226/99, 255/99, and 349/99 from the Liquidating Intendant of Banco Internacional de Desarrollo S.A. in Liquidation, dated March 5, 9, and 29, 1999, respectively.
Legal Advisory Report ALEG No. 052/99 of March 16, 1999.
Report from the Financial System Management SEFL-DELIQ No. 018/99 of March 31, 1999.

CONSIDERING:
That Article 4 of Resolution No. 170/97 cited above establishes that the BCB Board will expressly authorize the return of deposits constituted in BIDESA after October 31, 1997, following a special review and confirmation by the Banking and Financial Entities Superintendence (SBEF).

//2. B.D. No. 024/99

That Article 1 of Board Resolution No. 020/98, complemented and clarified by Board Resolution No. 033/98, approves the partial subrogation of deposits greater than $US.5,000.- constituted in BIDESA prior to October 31, 1997, which also extends to checking and savings accounts effectively constituted in said financial entity until December 12, 1997, provided they meet the following conditions:
a) If the balance on 12/12/97 is less than or equal to the balance on 31/10/97. b) If the difference between the balance on 12/12/97 and the balance on 31/10/97 is less than $US.100,000.- For balance variations greater than $US.100,000.-, Article 3 of Board Resolution No. 020/98 applies.

That Article 3 of Board Resolution No. 020/98 establishes that the BCB Board will expressly authorize the subrogation of deposits constituted in BIDESA after October 31, 1997, following a special review and "no observation (S/O)" rating by the Liquidating Intendant.

That in compliance with the aforementioned provisions, the Liquidating Intendant of BIDESA designated by the SBEF requested authorization from the BCB, through notes IL-BIN-226/99 of March 5, 1999, and IL-BIN-255/99 of March 9, 1999, for the subrogation through the issuance of CDDs of eleven fixed-term deposits constituted after October 31, 1997. Additionally, through note IL-BIN 349/99 of March 29, 1999, authorization was requested for the subrogation of Fixed Term Deposit No. 55/97 from the city of Cobija, in favor of Juana Yamamoto Meza.

That according to current legal provisions, it corresponds to the Liquidating Intendant, in their 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.

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

Article 1.- Authorize the partial subrogation of the eleven fixed-term deposits constituted in BIDESA after October 31, 1997, which after the special review carried out by the Liquidating Intendant have been rated "no observation (S/O)" by said authority, under their responsibility, in the attached state (Annex 1) which forms part of this Resolution, sent to the BCB through note IL-BIN No. 255/99 of March 9, 1999.
//3. B.D. No. 024/99

Such partial subrogation will be carried out with payment in cash up to $US.5,000.- and for larger sums through the issuance of CDDs, in strict adherence to the rules, criteria, limits, and procedures established in Board Resolutions of the BCB 170/97, 179/97, 020/98, and 033/98.

Article 2.- Authorize the subrogation of fixed-term deposit No. 55/97, in the name of Juana Yamamoto Meza, constituted in BIDESA after October 31, 1997, which after the special review carried out by the Liquidating Intendant has been rated "no observation (S/O)" by said authority, under their responsibility, in the attached state (Annex 2) which forms part of this Resolution, sent to the BCB through note IL-BIN No. 349/99 of March 29, 1999.

Such subrogation will be carried out through a cash payment of $US.772.-, in strict adherence to the rules, criteria, limits, and procedures established in Board Resolutions of the BCB 170/97, 179/97, 020/98, and 033/98.

Article 3.- If, subsequent to the subrogation authorized in the preceding articles, subsequent observations arise regarding the legitimacy, condition, or quality of the returned deposits, it will correspond to the Liquidating Intendant of BIDESA or, in its case, to the SBEF to initiate the pertinent legal actions for their respective recovery.

Article 4.- The Presidency and the General Management are charged with executing this Resolution.

La Paz, April 6, 1999

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Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G. Juan Medinaceli

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Fernando Campero P. Armando Méndez M.