Resolution 033/98

BOARD RESOLUTION NO. 033/98
SUBJECT: FINANCIAL SYSTEM - APPROVES CLARIFICATIONS AND COMPLEMENTS TO BOARD RESOLUTION NO. 020/98.

HAVING SEEN:

The Banking and Financial Entities Law No. 1488 of April 14, 1993.
The Central Bank of Bolivia Law No. 1670 of October 31, 1995.
The Resolution of the Superintendence of Banks and Financial Entities SB/143/97 of December 12, 1997.
The Board Resolution No. 170/97 of December 13, 1997.
The Board Resolution No. 179/97 of December 23, 1997.
The Board Resolution No. 020/98 of March 3, 1998.
The Report from the Financial System Management GSF 041/98 of March 31, 1998.
The Report from the Legal Advisory ALEG No. 116/98 of March 31, 1998.

CONSIDERING:

That in order to facilitate the process of partial subrogation of deposits greater than $5,000 from BIDESA in liquidation and the corresponding issuance of Certificates of Deposit Return (CDDs), the Financial System Management of the BCB and the Superintendence of Banks and Financial Entities recommend that complements and clarifications be made to Board Resolution No. 020/98 of March 3, 1998.

That in the opinion of the Legal Advisory, the BCB Board of Directors may modify and interpret its decisions in accordance with the attribution granted to it by Article 54, item o) of Law 1670 of October 31, 1995.

THEREFORE,

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

Article 1.- To complement and clarify Board Resolution No. 020/98 of March 3, 1998, in the following terms:

SAYS
Article 1.- Approve the partial subrogation of deposits greater than $5,000 constituted in BIDESA prior to October 31, 1997, complementing what is provided in Resolution No. 170/97, to which effect the BCB will acquire the rights of the depositors with Certificates of Deposit Return (CDDs).

SHOULD SAY
“Article 1.- Approve the partial subrogation of deposits greater than $5,000 constituted in BIDESA prior to October 31, 1997, complementing what is provided in Resolution No. 170/97, to which effect the BCB will acquire the rights of the depositors with Certificates of Deposit Return (CDDs). The partial subrogation of deposits greater than $5,000 also extends to current accounts and savings accounts effectively constituted in BIDESA until December 12, 1997, if any of the following conditions are met:
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 $100,000.- For variations in balances greater than $100,000, Article 3 of Board Resolution No. 020/98 applies.”

SAYS
Article 2.- The amount of this subrogation in no case may be greater than the claim registered within the legal deadline before the Liquidating Intendant, deducting the $5,000 that were subrogated in cash.

SHOULD SAY
“Article 2.- The amount of this subrogation, referred to only to capital, in no case may be greater than the claim registered within the legal deadline before the Liquidating Intendant, deducting the $5,000 that were subrogated in cash.”

SAYS
Article 4.- (First paragraph) The deposits subrogated by the BCB will be compensated in ascending tranches according to the following table:

SHOULD SAY
“Article 4.- The deposits subrogated by the BCB will be paid in ascending tranches according to the following table:…”

SAYS
Article 5.- It will be for the Liquidating Intendant to qualify and consolidate the deposits, based on the claims accredited within the legal deadline, following the criteria established in Article 5 of Board Resolution No. 170/97.

SHOULD SAY
“Article 5.- It will be for the Liquidating Intendant to verify the authenticity and accuracy of the corresponding documentation, as well as to consolidate the deposits based on the claims accredited within the legal deadline. The capital is consolidated into a single amount for those claims that have the same beneficiary nomination. Other cases are considered as individual accounts. CDDs will be issued only in favor of and in the name of the original account holder.”

SAYS
Article 7.- Deposits left in pledge as guarantee for credits in BIDESA will only be subrogated by the BCB once the principal obligations have been fully cancelled.

SHOULD SAY
“Article 7.- In the case of deposits left in pledge as guarantee for credits in BIDESA, the Liquidating Intendant, once the obligation has been cancelled, will request the BCB to issue the CDD in favor of the depositor only for the balance.”

Article 2.- Substitute the document ANNEX titled Assignment of Rights for Restitution and Payment with Certificates of Deposit Return (CDDs), referred to in Article 8 of Board Resolution No. 020/98, with the one attached to this Resolution.

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

La Paz, March 31, 1998

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Juan Antonio Morales A.

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Armando Pinell S.

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Jaime Ponce G.

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Juan Medinacelli V.

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Fernando Campero P.

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Juan Pablo Zegarra A.