Resolution 068/2000

BOARD RESOLUTION NO. 068/2000 SUBJECT: FINANCIAL ENTITIES MANAGEMENT - EXTENDS THE VALIDITY OF THE REGULATION FOR THE COLLECTION OF OLD DELINQUENT PORTFOLIO.

VIEWING: Law No. 1670 of October 31, 1995. Law on Government Administration and Control No. 1178 (SAFCO) of July 20, 1990. Supreme Decree No. 25336 of March 29, 1999. Board Resolutions of the BCB 110/98, 111/98 and 112/98 of December 17, 1998. Board Resolution of the BCB No. 053/99 of June 22, 1999. Board Resolution of the BCB No. 045/2000 of July 4, 2000. Report from the Financial Entities Management SRRA-DRLA 207/154/2000 of October 3, 2000. Report from the Legal Affairs Management GAL No. 201/2000 of October 3, 2000.

CONSIDERING: That through Board Resolution of the BCB No. 053/99, the Regulation for the Collection of Old Delinquent Portfolio was approved, regulating the procedures for the recovery, restructuring and/or write-off of delinquent portfolio, overdue or in judicial collection received 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, 2000.

//2. B.R. No. 068/2000 That through Board Resolution of the BCB No. 045/2000, the validity of the Regulation for the Collection of Old Delinquent Portfolio approved through Board Resolution No. 053/99 was extended until September 30, 2000.

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 incentive and penalty conditions determined by its Board.

That Article 33 of the SAFCO Law establishes that there is no administrative, executive or civil responsibility when the decision approved 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 the Report SRRA-DRLA No. 207/154/2000 from the Financial Entities Management recommends the extension of the collection policies established in the Regulation for the Collection of Old Delinquent Portfolio, given the positive results obtained in the extension until September 30, 2000.

That in the opinion of the Legal Affairs Management through note GAL No. 201/2000, 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 Old Delinquent Portfolio approved through Board Resolution No. 045/2000 of July 4, 1999, until March 31, 2001.

//3. B.R. No. 068/2000 Article 2.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, October 3, 2000

---

Juan Antonio Morales A.

---

Armando Pinell S. Jaime Ponce G.

---

Juan Medinaceli V. Armando Méndez M.