Resolution 032/2001

BOARD RESOLUTION NO. 032/2001
SUBJECT: FINANCIAL ENTITY MANAGEMENT – EXTENDS THE VALIDITY OF THE REGULATION FOR THE COLLECTION OF DELINQUENT OLD PORTFOLIO.

HAVING SEEN:
Law No. 1670 of October 31, 1995.
Law on Government Administration and Control No. 1178 (SAFCO) of July 20, 1990.
Supreme Decree No. 25336 of March 29, 1999.
Board Resolutions of the BCB 110/98, 111/98, and 112/98 of December 17, 1998.
Board Resolution of the BCB No. 053/99 of June 22, 1999.
Board Resolutions of the BCB 045/2000 of July 4, 2000, and 068/2000 of October 3, 2000.
Technical-Legal Report of the Credit Recovery Committee GEF-SRRA No. 123/2001.

CONSIDERING:
That through Board Resolution of the BCB No. 053/99, the Regulation for the Collection of Delinquent Old Portfolio was approved, regulating the procedures for the recovery, restructuring, and/or write-off of delinquent, overdue, or judicially collected portfolio received by the BCB in administration and in payment in kind from the former INALPRE and the Banks in Liquidation Crédito Oruro S.A., del Progreso Nacional S.A.M., Potosí S.A., and de la Vivienda S.A.M. This regulation was applicable until June 30, 2000.

That through Board Resolution of the BCB No. 068/2000, the validity of the Regulation for the Collection of Delinquent Old Portfolio approved by Board Resolution No. 053/99 was extended until March 31, 2001.

That Article 3 of Supreme Decree No. 25336 authorizes the BCB to recover the portfolio delivered by the former National Preinvestment Institute (public and private sector) under the incentive and penalty conditions determined by its Board.

That Article 33 of the SAFCO Law establishes that there is no administrative, executive, or civil responsibility when the decision approved aims for the greatest benefit of the entity.

That Article 55 of the aforementioned Law repeals Law Decree No. 16390 of April 30, 1979, which established the imprescriptibility of debts to the State.

That Article 54(j) of Law No. 1670 empowers the Board of Directors of the Central Bank of Bolivia to set and modify interest rates on credits granted by the BCB, taking into account market rates, as well as to establish their other terms and conditions.

That Technical-Legal Report SRRA-DRLA No. 163/2001 from the Credit Recovery Committee recommends the extension of the collection policies established in the Regulation for the Collection of Delinquent Old Portfolio, given the positive results obtained in the extension until March 31, 2001.

That it is the attribution of the Board to approve, modify, and interpret the Regulations of the BCB, by two-thirds of the votes of its total members, without the need for any additional administrative act.

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

Article 1.- Extend the validity of the Regulation for the Collection of Delinquent Old Portfolio approved by Board Resolution No. 068/2000 of October 3, 2000, until May 31, 2001. From this date, the delinquent old portfolio will be delivered via administration mandate to the financial entity awarded in the currently ongoing bidding process.

Article 2.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, April 17, 2001

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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.