Resolution 055/98 Approving Investment Margin in the Bank for International Settlements

BOARD RESOLUTION NO. 055/98
SUBJECT: INTERNATIONAL AFFAIRS - APPROVES INVESTMENT MARGIN IN THE BANK FOR INTERNATIONAL SETTLEMENTS (BIS).

HAVING REVIEWED:
Law No. 1670 of October 31, 1995, Chapter II, regarding the functions of the Central Bank of Bolivia in relation to international reserves.
The Regulations for the Administration of International Reserves, approved by Board Resolution No. 080/98 of February 18, 1997.
Report GAI No. 007/98 from the International Affairs Management of May 20, 1998.
Report UAJUR No. 342/98 from the Legal Affairs Unit of May 21, 1998.

CONSIDERING:
That Article 10 of the Regulations for the Administration of International Reserves stipulates that the Board of the BCB shall set the maximum limits for the investment of international monetary reserves in each of the multilateral world or regional organizations in which the country holds shareholding participation. That Report GAI No. 007/98 from the International Affairs Management recommends making investments in the Bank for International Settlements (BIS), in time deposits and fixed-income instruments, given its character as a Bank of Central Banks and its recognized international prestige and solvency. That according to Report UAJUR No. 342/98 from the Legal Affairs Unit, there is no legal impediment for the Board to authorize the making of investments in the Bank for International Settlements (BIS).

That the BCB Reserve Administration Committee in its meeting of May 8, 1998 recommends, based on the criteria of security, liquidity, profitability, and institutional reciprocity established in the aforementioned Regulations, to make time deposits in the BIS, up to a maximum of US$ 40,000,000.00 (Forty Million 00/100 US Dollars), as well as investment in fixed-income instruments issued by the aforementioned international financial organization.

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

Article 1.- Approve the establishment of time deposits in the Bank for International Settlements (BIS), with a maximum investment limit of US$ 40,000,000.00 (FORTY MILLION 00/100 US DOLLARS) until December 31, 1998.

Article 2.- Approve the investment of International Reserves in fixed-income instruments issued by the BIS.

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

La Paz, May 26, 1998

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Juan Medinaceli V.

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Armando Pinell S.

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Jaime Ponce G.

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Fernando Campero P.