Resolution 037/98

BOARD RESOLUTION NO. 037/98
SUBJECT: FINANCIAL SYSTEM - AUTHORIZATION NO. 3 FOR CASH RETURN UP TO $US 5,000, THROUGH PARTIAL SUBROGATION, OF THREE DEPOSITS CONSTITUTED AT BIDESA AFTER OCTOBER 31, 1997.

HAVING SEEN:
Law 1670 of October 31, 1995.
Board Resolution No. 170/97 of December 13, 1997.
Board Resolution No. 179/97 of December 23, 1997.
Note IL.BIN-211/98 from the Liquidator Superintendent of the International Development Bank (BIDESA) of February 2, 1998.
Board Resolution No. 011/98 of February 10, 1998.
BCB Board Resolution No. 024/98 of March 10, 1998.
Notes IL-BIN-315/98 and IL-BIN-330/98 from the Liquidator Superintendent of the International Development Bank of March 18 and 23, 1998, respectively.
Legal Advisory Report ALEG No. 109/98 of March 26, 1998.
Financial System Management Report GSF No. 039/98 of March 27, 1998.

CONSIDERING:
That Article 4 of Resolution No. 170/97 establishes that the BCB Board shall expressly authorize the cash return of up to $US 5,000 for deposits constituted at BIDESA after October 31, 1997, after a special review and confirmation by the Banking and Financial Entities Superintendence (SBEF).

In compliance with the aforementioned provision, the Liquidator Superintendent of BIDESA, designated by the SBEF, forwarded to the BCB via note IL-BIN-211/98 of February 2, 1998, the detailed statement of fixed-term deposits constituted at said financial entity after October 31, 1997. This list establishes three categories: without observations (clarifying that subsequent observations could arise), restricted, and under review.

According to current legal provisions, it corresponds to the Liquidator Superintendent, 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 obligations owed.

The Liquidator Superintendent of BIDESA, through notes IL-BIN-315/98 and IL-BIN-330/98, complements the review carried out in the detail sent on February 2, 1998, with lists of fixed-term deposits classified as "without observations" that were not found in that initial detail.

In the opinion of the Legal Advisory and the Financial System Management, it corresponds to authorize the subrogation of the deposits listed in the aforementioned supplementary list, given that compliance with Article 4 of Board Resolution No. 170/97 has been met.

THEREFORE,

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

Article 1.- Authorize the cash return of up to $US 5,000 for the three fixed-term deposits constituted at BIDESA after October 31, 1997, which after the special review carried out by the Liquidator Superintendent have been classified as "without observation" (S/O) by said authority, in the supplementary list attached to this Resolution.

Such return must be carried out in strict adherence to the norms, criteria, limits, and procedures established in BCB Board Resolution No. 170/97, which were applied to deposits constituted prior to October 31, 1997.

Article 2.- If, subsequent to the authorized return in the preceding Article, subsequent observations arise regarding the legitimacy, condition, or quality of the returned deposits, it will correspond to the SBEF to initiate the pertinent legal actions for their respective recovery.

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

La Paz, March 31, 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.