Resolution 045/2000

BOARD RESOLUTION NO. 045/2000
SUBJECT: FINANCIAL ENTITIES MANAGEMENT - EXTENSION OF THE VALIDITY OF THE REGULATION FOR THE COLLECTION OF PAST-DUE OLD PORTFOLIO.

HAVING SEEN:
Law No. 1670 of October 31, 1995.
Board Resolutions of the Central Bank of Bolivia (BCB) 110/98, 111/98, and 112/98 of December 17, 1998.
Supreme Decree No. 25336 of March 29, 1999.
Board Resolution of the BCB No. 053/99 of June 22, 1999.
Government Administration and Control Law No. 1178 (SAFCO) of July 20, 1990.
Report from the Financial Entities Management SRRA-DRLA 088/2000 of July 3, 2000.
Report from the Legal Affairs Management GAL No. 156/2000 of July 3, 2000.

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

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That Article 3 of Supreme Decree No. 25336 authorizes the BCB to recover the portfolio delivered by the former National Pre-investment Institute (public and private sector) under the conditions of incentives and penalties determined by its Board.

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

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

That Article 54 subsection 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 its other terms and conditions.

That Report SRRA-DRLA No. 088/2000 from the Financial Entities Management recommends the extension of the collection policies established in the Regulation for the Collection of Past-Due Old Portfolio, in light of requests submitted by debtors.

That in the opinion of the Legal Affairs Management through note GAL No. 156/2000, it is the attribute 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 Past-Due Old Portfolio approved through Board Resolution No. 053/99 dated June 22, 1999, until September 30 of the current year.

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

La Paz, July 4, 2000

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Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G. Juan Medinaceli V.

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Fernando Campero P. Armando Méndez M.