Resolution 026/98: Procedure for Regularizing Pending and Overdue Foreign Exchange Delivery and Clearance Operations as of July 31, 1997

BOARD RESOLUTION NO. 026/98
SUBJECT: INTERNATIONAL AFFAIRS - PROCEDURE FOR THE REGULARIZATION OF PENDING AND OVERDUE FOREIGN EXCHANGE DELIVERY AND CLEARANCE OPERATIONS AS OF JULY 31, 1997.

HAVING REVIEWED:
Law No. 1670 of October 31, 1995.
Board Resolution No. 135/97 of August 5, 1997.
Report SOI No. 002/98 from the International Affairs Management dated March 4, 1998.
Report ALEG No. 078/98 from the Legal Advisory dated March 5, 1998.
Note from the Internal Audit Unit U.AUDI.I. No. 106/98 dated March 17, 1998.

CONSIDERING:
That pursuant to Article 19 of Law 1670, the Central Bank of Bolivia is authorized to regulate the exchange regime and execute exchange policy.

That through Board Resolution No. 135/97 of August 5, 1997, a deadline until January 31, 1998 was granted for the delivery and clearance of pending foreign exchange and that which had become overdue as of July 31, 1997, exempt from any fine or surcharge.

That in the opinion of the Chief Internal Auditor, the proposal formulated by the International Affairs Management for the closure of old accounts regarding foreign exchange delivery and clearance registered up to June 21, 1992, is appropriate, given that these do not form part of the Balance Sheet records (Assets, Liabilities, and Equity) of the BCB as they appear in off-balance sheet or control accounts.

That it corresponds to the Central Bank of Bolivia to issue the regulatory norms and procedures deemed necessary for the regularization of pending foreign exchange delivery and clearance operations that had become overdue as of July 31, 1997.

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THEREFORE,

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

Article 1.- Approve the following procedure for the regularization of pending foreign exchange delivery and clearance operations that had become overdue as of July 31, 1997, from the "SIVEX" Account, which records these operations starting from June 22, 1992:

a) Those exporters who have completed one hundred percent (100%) of the foreign exchange delivery but still have pending documentary clearance, may regularize this operation in the periods indicated below, prior to the submission of the required documentation and payment of the corresponding fine:

i) One per thousand (1‰) between April 1 and June 30, 1998. ii) Three per thousand (3‰) between July 1 and December 31, 1998. iii) Nine per thousand (9‰) between January 2 and December 31, 1999.

The fines will be calculated based on the value of the pending documentary clearance.

b) Those exporters who still have pending the regularization of both the delivery of foreign exchange and the documentary clearance, may make the delivery of the foreign exchange pending as of July 31, 1997 or opt for the payment of one centavo of boliviano for each dollar pending delivery in the periods indicated below, prior to the submission of the required documentation and cancellation of the corresponding fine:

i) Three per thousand (3‰) between April 1 and June 30, 1998. ii) Nine per thousand (9‰) between July 1 and December 31, 1998. iii) Twenty-seven per thousand (27‰) between January 2 and December 31, 1999.

The fines will be calculated based on the value of the pending foreign exchange delivery.

Article 2.- Those exporters who, as of December 31, 1999, do not comply with the regularizations of pending foreign exchange delivery and clearance that had become overdue as of July 31, 1997, in accordance with Article 1 of this Resolution, will permanently lose the right to receive the corresponding certification from the BCB.

Article 3.- Pending operations registered in the BCB in foreign exchange delivery and clearance accounts up to June 21, 1992, will be removed from accounting records and their files archived, due to the time elapsed and the difficulties of regularization by exporters.

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Article 4.- The Central Bank of Bolivia will issue in favor of exporters who have fulfilled their obligations, the certification that accredits the presentation of the corresponding documentary clearance and that they have no pending balances of foreign exchange delivery as of July 31, 1997.

Article 5.- This Board Resolution will enter into force on April 1, 1998.

Article 6.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, March 17, 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.