Resolution 060/98: Authorization for Partial Subrogation and Return of BIDESA Deposits

BOARD OF DIRECTORS RESOLUTION NO. 060/98
SUBJECT: FINANCIAL SYSTEM - AUTHORIZATION NO. 6 FOR THE RETURN, THROUGH PARTIAL SUBROGATION, OF DEPOSITS CONSTITUTED IN BIDESA AFTER OCTOBER 31, 1997 AND CHECKING AND SAVINGS ACCOUNTS WITH BALANCES GREATER THAN $US 100,000, IN ACCORDANCE WITH THE RULES, PROCEDURES AND LIMITS ESTABLISHED IN THE BOARD OF DIRECTORS RESOLUTIONS OF THE BCB NO. 170/97, 179/97, 020/98, 033/98.

HAVING SEEN:
Law 1670 of October 31, 1995.
The Board of Directors Resolutions of the BCB 170/97, 179/97, 020/98 and 033/98, of December 13 and 23, 1997 and March 3 and 31, 1998, respectively.
Notes IL-BIN-545/98 and IL-BIN-546/98 of June 3, 1998, from the Liquidating Intendant of Banco Internacional de Desarrollo S.A.
Notes IL-BIN-557/98 and IL-BIN-558/98 of June 8, 1998, from the Liquidating Intendant of Banco Internacional de Desarrollo S.A.
The Report of the Legal Advisory ALEG No. 206/98 of June 10, 1998.
The Report of the Financial System Management GSF No. 083/98 of June 10, 1998.

CONSIDERING:
That Article 4 of Resolution No. 170/97 establishes that the Board of Directors of the BCB will expressly authorize the return of deposits constituted in BIDESA after October 31, 1997, after a special review and confirmation by the Bank Superintendence and Financial Entities (SBEF).

//2. R.D. No. 060/98
That Article 1 of Board of Directors Resolution No. 020/98, complemented and clarified by Board of Directors 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 variations in balances greater than $US 100,000.-, Article 3 of Board of Directors Resolution No. 020/98 applies.

That Article 3 of Board of Directors Resolution No. 020/98 establishes that the Board of Directors of the BCB will expressly authorize the subrogation of deposits constituted in BIDESA after October 31, 1997, after a special review and "without observation" qualification by the Liquidating Intendant.

That in compliance with the aforementioned provisions, the Liquidating Intendant of BIDESA appointed by the SBEF requested the BCB, through notes IL-BIN-545/98 and IL-BIN-546/98 of June 3, 1998 (complemented by notes IL-BIN-557/98 and IL-BIN-558/98 of June 8, 1998), the subrogation through Certificates of Deposit (CDDs) of the fixed-term deposits constituted in said financial entity after October 31, 1997, as well as balances exceeding $US 100,000.- of checking and savings accounts, once the pending observations in Fixed-Term Deposits, Checking Accounts and Savings Accounts were remedied as of June 3, 1998.

That according to the current legal provisions, it corresponds to the Liquidating Intendant, 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 up to $US 5,000.- of two fixed-term deposits and eight savings accounts and checking accounts exceeding $US 100,000.- constituted in BIDESA after October 31, 1997, which after the special review carried out by the Liquidating Intendant, have been classified as "without observation (S/O)" by said authority, under its responsibility, in the attached state that forms part of this Resolution, sent to the BCB through note IL-BIN-557/98 of June 8, 1998.
//3. R.D. No. 060/98
Such return must be carried out in strict compliance with the rules, criteria, limits and procedures established in Board of Directors Resolution of the BCB No. 170/97, which were applied to deposits constituted prior to October 31, 1997.

Article 2.- Authorize the partial subrogation, through Certificates of Deposit (CDDs), of two fixed-term deposits and fifteen savings accounts and checking accounts exceeding $US 100,000.- constituted in BIDESA after October 31, 1997, which after the special review carried out by the Liquidating Intendant, have been classified as "without observation (S/O)" by said authority, under its responsibility, and which in the attached states form part of this Resolution, sent to the BCB through notes IL-BIN-557/98 (checking and savings accounts) and IL-BIN-558/98 (fixed-term deposits) of June 8, 1998.
Such return must be carried out in strict compliance with the rules, criteria, limits and procedures established in the Board of Directors Resolutions of the BCB 170/97, 020/98 and 033/98.

Article 3.- If subsequent observations arise regarding the legitimacy, condition or quality of the returned deposits after the return authorized in the preceding articles, it will correspond to the SBEF to initiate the pertinent legal actions for their respective recovery.
Article 4.- The Presidency and General Management are entrusted with the execution and compliance of this Resolution.
La Paz, June 16, 1998

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Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G.

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Juan Medinaceli V. Fernando Campero P.