Resolution 026/99 Approving Maximum Limit for Foreign Investments by Insurance Companies

BOARD RESOLUTION NO. 026/99
SUBJECT: ECONOMIC POLICY ADVISORY – APPROVAL OF MAXIMUM LIMIT FOR FOREIGN INVESTMENTS BY INSURANCE COMPANIES.

VIEWED:
Law on Insurance No. 1883 of June 25, 1998.
Supreme Decree 25201 of October 16, 1998.
Report from the Economic Policy Advisory No. 002/99 of March 22, 1999.
Report from the Legal Advisory ALEG No. 012/99 of March 25, 1999.

CONSIDERING:
That Article 35 of Law on Insurance No. 1883 establishes that the Central Bank of Bolivia will periodically set the maximum limit for investments in securities of issuers constituted abroad, which may not exceed fifty percent (50%) of the resources for investment.

That the Central Bank of Bolivia must ensure compliance with its monetary program.

That the Economic Policy Advisory in its Report No. 002/99 recommends that insurance companies be authorized to place up to 10% of their investment resources abroad during 1999.

That the Report from the Legal Advisory ALEG No. 012/99 states that the Board of Directors has the authority to define annually the maximum limits for foreign investments by Insurance Companies, in accordance with Article 18 of Supreme Decree 25201 of October 16, 1998.

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

Article 1.- Authorize Insurance Companies to invest abroad up to 10% of their investment resources during 1999.

Article 2.- Communicate the foregoing decision to CONFIP so that it establishes the respective limits within the maximum fixed by this Resolution.

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

La Paz, April 13, 1999

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Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G.

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Juan Medinaceli V. Armando Méndez M.