Regulatory Alerts1998-05-27 | Resolución 057/98Added · Updated
Resolution 057/98: Authorization for Partial Subrogation and Return of BIDESA Deposits
The Board of Directors of the Central Bank of Bolivia authorizes the cash return of up to US$5,000 and the partial subrogation via Certificates of Deposit (CDDs) for fixed-term deposits held at BIDESA after October 31, 1997. This authorization applies exclusively to depositors whose accounts have been reviewed by the Liquidator and certified as having no observations. The execution of these returns and subrogations must strictly adhere to the norms, criteria, limits, and procedures established in previous BCB Resolutions 170/97, 020/98, and 033/98. The Superintendence of Banks and Financial Entities is responsible for initiating legal actions to recover funds if subsequent observations arise regarding the legitimacy of the returned deposits.
BOARD RESOLUTION NO. 057/98 SUBJECT: FINANCIAL SYSTEM - AUTHORIZATION NO. 5 FOR THE RETURN, THROUGH PARTIAL SUBROGATION, OF DEPOSITS CONSTITUTED IN BIDESA AFTER OCTOBER 31, 1997, IN ACCORDANCE WITH THE RULES, PROCEDURES, AND LIMITS ESTABLISHED IN THE BOARD RESOLUTIONS OF THE BCB NO. 170/97, 179/97, 020/98, 033/98.
HAVING SEEN: Law 1670 of October 31, 1995. The Board Resolutions of the BCB 170/97, 179/97, 020/98, and 033/98, dated December 13 and 23, 1997, and March 3 and 31, 1998, respectively. Letters IL-BIN-533/98 and IL-BIN-534/98 of May 25, 1998, from the Liquidator Superintendent of Banco Internacional de Desarrollo S.A. The Legal Advisory Report ALEG No. 190/98 of June 1, 1998. The Financial System Management Report GSF No. 077/98 of June 4, 1998.
CONSIDERING: That Article 4 of the aforementioned Resolution No. 170/97 establishes that the BCB Board shall expressly authorize the return of deposits constituted in BIDESA after October 31, 1997, following a special review and confirmation by the Superintendence of Banks and Financial Entities (SBEF).
That Article 1 of Board Resolution No. 020/98, complemented and clarified by Board Resolution No. 033/98, approves the partial subrogation of deposits greater than US$5,000 constituted in BIDESA prior to October 31, 1997, which also extends to checking and savings accounts effectively constituted in said financial entity until December 12, 1997, provided they meet the following conditions: a) If the balance on 12/12/97 is less than or equal to the balance on 10/31/97. b) If the difference between the balance on 12/12/97 and the balance on 10/31/97 is less than US$100,000. For balance variations greater than US$100,000, Article 3 of Board Resolution No. 020/98 applies.
That Article 3 of Board Resolution No. 020/98 establishes that the BCB Board shall expressly authorize the subrogation of deposits constituted in BIDESA after October 31, 1997, following a special review and a "no observations" rating by the Liquidator Superintendent.
That in compliance with the aforementioned provisions, the Liquidator Superintendent of BIDESA designated by the SBEF requested authorization from the BCB, through letters IL-BIN-533/98 and IL-BIN-534/98 of May 25, 1998, for the partial payment of up to US$5,000 of deposits that were under review; the subrogation via CDDs of fixed-term deposits constituted in said financial entity after October 31, 1997, as well as balances exceeding US$100,000 in checking and savings accounts, once the pending observations were remedied on May 25, 1998.
That 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 the obligations owed.
THEREFORE
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Authorize the cash return of up to US$5,000 of fixed-term deposits constituted in BIDESA after October 31, 1997, only for those cases that, after the special review conducted by the Liquidator Superintendent, have been rated "no observations (S/O)" by said authority, under their responsibility, in the attached statement that forms part of this Resolution, sent to the BCB through letters IL-BIN-533/98 and IL-BIN-534/98 of May 25, 1998.
Such return must be carried out in strict adherence to the rules, 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.- Authorize the partial subrogation, via CDDs, of fixed-term deposits constituted in BIDESA after October 31, 1997, only for those cases that, after the special review conducted by the Liquidator Superintendent, have been rated "no observations (S/O)" by said authority, under their responsibility, in the attached statement that forms part of this Resolution, sent to the BCB through letters IL-BIN-533/98 and IL-BIN-534/98 of May 25, 1998.
Such return must be carried out in strict adherence to the rules, criteria, limits, and procedures established in BCB Board Resolutions 170/97, 020/98, and 033/98, which were applied to deposits constituted prior to October 31, 1997.
Article 3.- If, subsequent to the return authorized in the preceding articles, subsequent observations arise regarding the legitimacy, condition, or quality of the returned deposits, it shall be the responsibility of the SBEF to initiate the pertinent legal actions for their respective recovery.
Article 4.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.
La Paz, June 5, 1998
Juan Antonio Morales A.
Armando Pinell S.
Jaime Ponce G.
Juan Medinaceli V.
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