Resolution 072/2005

BOARD RESOLUTION NO. 072/2005
SUBJECT: FINANCIAL ENTITIES MANAGEMENT – BROAD POWERS OF THE CREDIT RECOVERY COMMITTEE.

HAVING SEEN:
Law No. 1670 of October 31, 1995.
Board Resolution No. 053/1999 of June 22, 1999.
Board Resolution No. 061/2003 of June 6, 2003.
The Report from the Financial Entities Management GEF SRRA No. 120/2005 of May 19, 2005.
The Report from the Legal Affairs Management SAJU No. 86/2005 of May 23, 2005.

CONSIDERING:
That Article 54, subsections j) and n) of Law No. 1670 grants the Board of Directors of the Central Bank of Bolivia the powers to set and modify interest rates on credits granted by the BCB, taking into account market rates for similar operations and establishing their other terms and conditions, as well as formulating policies regarding the internal management of the BCB, supervising their execution.

That Board Resolution No. 053/99 approves the Regulation on the Collection of Past-Due Old Portfolio.

That Board Resolution No. 061/2003 extends the validity of Chapters II (Credit Recovery Committee) and V (Write-off of Unrecoverable Portfolio) of the Regulation on the Collection of Past-Due Old Portfolio until the total conclusion of the administration of the Past-Due Old Portfolio.

That the Report from the Financial Entities Management GEF SRRA No. 120/2005 recommends expanding the powers of the Credit Recovery Committee within Chapter II, Article 13 of the Regulation on the Collection of Past-Due Old Portfolio.

That the Report from the Legal Affairs Management SAJU No. 86/2005 states that it corresponds to the Board of Directors of the Institution, according to the attribution contained in Article 54 subsection q) of Law No. 1670 and numeral 37) of Article 11 of the Statutes of the BCB, to approve the modification of Article 13 of the Regulation for the Collection of Past-Due Old Portfolio, and expresses its conformity with the proposal of the Financial Entities Management to complement Article 13 of said Regulation.

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

Article 1.- Expand the powers of the Credit Recovery Committee within Chapter II, Article 13 of the Regulation on the Collection of Past-Due Old Portfolio, as follows:

SAYS:
Article 13 (Powers). - The Credit Recovery Committee shall have the following Powers:
a) To be informed of the Restructuring of credits under the conditions stipulated in this regulation. b) To approve the write-off of credits. c) To approve complementary manuals and procedures that are necessary for the recovery of credits. d) To authorize the Publication of delinquent, overdue, or executing debtors who do not have a known domicile, in oral or written press media of national and local circulation.

SHOULD SAY:
“Article 13 (Powers). - The Credit Recovery Committee shall have the following Powers:
a) To be informed of the Restructuring of credits under the conditions stipulated in this regulation. b) To approve the write-off of credits. c) To approve complementary manuals and procedures that are necessary for the recovery of credits. d) To authorize the Publication of delinquent, overdue, or executing debtors who do not have a known domicile, in oral or written press media of national and local circulation. e) To authorize the forgiveness of penalty interest, for the total early repayment of credits under the financial conditions of the last contractual document.”

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

La Paz, May 24, 2005

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Juan Antonio Morales A.

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Enrique Ackermann A. José Luis Evia V.

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Fernando Paz B.