Resolution 079/98 Approving the Regulation for the Registration of Bolivia's Public and Private External Debt

BOARD RESOLUTION NO. 079/98 SUBJECT: INTERNATIONAL AFFAIRS - APPROVES THE REGULATION FOR THE REGISTRATION OF BOLIVIA'S PUBLIC AND PRIVATE EXTERNAL DEBT.

HAVING VIEWED: Law No. 1670 of October 31, 1995. The Statute of the Central Bank of Bolivia, approved by Board Resolution No. 082/97 of February 20, 1997. Report GAI No. 011/98 from the International Affairs Management of August 13, 1998. Report ALEG No. 267/98 from the Legal Advisory of August 7, 1998.

CONSIDERING: That Law 1670 of October 31, 1995, in its articles 21 and 29, establishes the functions that the Central Bank of Bolivia must perform regarding public and private external debt.

That it is necessary to establish the norms and procedures through which the Central Bank of Bolivia will maintain the official registry of the country's public and private external debt; perform the service of public external debt; participate in the renegotiation and conversion of public external debt; and publish statistics on Bolivia's external debt.

That in application of what is provided in chapters III and V of Law 1670, the International Affairs Management recommends the issuance of a Regulation for the registration of the country's public and private external debt.

That in the opinion of the Legal Advisory, the aforementioned draft Regulation complies with the current legal norms in this matter.

THEREFORE

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

Article 1.- Approve the Regulation for the Registration of Bolivia's Public and Private External Debt, which is attached and forms part of this Resolution.

Article 2.- The aforementioned Regulation will enter into force on October 1, 1998.

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

La Paz, September 1, 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.

REGULATION FOR THE REGISTRATION OF PUBLIC AND PRIVATE EXTERNAL DEBT

CHAPTER I OBJECT AND SCOPE

Article 1.- The purpose of this Regulation is to establish the norms and procedures through which the Central Bank of Bolivia (BCB) will maintain the official registry of Bolivia's public and private external debt; perform the service of public external debt; participate in the renegotiation and conversion of public external debt; and publish statistics on the country's external debt.

CHAPTER II PUBLIC EXTERNAL DEBT

Article 2.- For the purposes of this Regulation, Public External Debt is considered to be that contracted by non-residents by any public institution and that contracted with a state guarantee by private entities.

Article 3.- The Central Bank of Bolivia is the institution legally charged with maintaining the registry of all external indebtedness contracted by the Republic or guaranteed by the Bolivian State.

Article 4.- All public institutions, within a period of 30 days from the date of signing new external debt contracts, are obligated to send a copy thereof and/or the supporting legal documentation of any form of new indebtedness to the International Affairs Management of the Central Bank of Bolivia.

Article 5.- Private companies that contract credit or any new type of indebtedness with a state guarantee must send to the International Affairs Management of the BCB, within a period of 30 days from the date of signing, a copy of the respective contracts and all other supporting legal documentation.

Article 6.- The International Affairs Management of the BCB will monitor the new external indebtedness contracted. It will assign a control number to each credit and officially register it in the Debt Management and Analysis System (SIGADE). The Central Bank of Bolivia will issue a certification of registration of the new credits.

Article 7.- Monthly and until the first five days of each month, the aforementioned institutions must send to the International Affairs Management the disbursement flows of their external debt in Form DEX 01/98 (Annex 1).

Article 8.- The Central Bank of Bolivia will inform the Ministry of Finance of the list of institutions that did not report their external obligations in accordance with the preceding Article, and will request the suspension of external disbursements for said institutions until they regularize the sending of this information.

Article 9.- The International Affairs Management of the BCB will request all external creditor organizations to send statements and debt service settlements, with a notice of no less than 30 days prior to each due date, and will proceed to verify the amounts to be paid.

Article 10.- Monthly and with a notice of seven days prior to the due date, the BCB will notify debtor institutions of the details of their external debt obligations and will require the timely deposit of funds for payment to the creditor.

Article 11.- The Central Bank of Bolivia will effect the payment of the service of Public External Debt only when the debtor has deposited the corresponding funds.

Article 12.- The BCB will effect the payment of external debt obligations and will charge the commission established in the Table of Terms and Conditions for the Collection of Commissions and Other Income.

Article 13.- Institutions that make direct payment of their external obligations must obligatorily report this information to the International Affairs Management of the BCB on the date of the fund transfer.

Article 14.- At the request of the Ministry of Finance, the BCB will provide relevant financial information to different financiers and/or external creditors with whom new indebtedness is being negotiated, and regarding the external balances owed by the public institution requesting the credit.

CHAPTER III PRIVATE EXTERNAL DEBT

Article 15.- For statistical purposes and the adequate fulfillment of the external debt registry, all entities in the private sector must register with the Central Bank of Bolivia the external obligations they sign, as well as foreign financings that have outstanding balances as of the date, subject to Article 21 of Law 1670 and Article 39 of Supreme Decree 21060.

Article 16.- Information on private external debt contracted with terms greater than one year must be sent to the International Affairs Management of the Central Bank of Bolivia in forms DEX 02/98 (Annex 2) and DEX 04/98 (Annex 4); the latter, with information corresponding to the previous quarter, until the first half of each quarter. New external credits contracted must be reported within 30 days following the date of contract signing.

Article 17.- Private institutions must remit to the International Affairs Management of the BCB information related to their external indebtedness, within the timeframes and forms mentioned below, as applicable:

For external obligations contracted through bonds, promissory notes, commercial paper, and other financial instruments, within 30 days following the date of issuance of said instruments in Form DEX 03/98 (Annex 3). Information corresponding to the previous quarter, until the first half of each quarter, in Form DEX 05/98 (Annex 5).

Credits with a maturity term of up to one year (short-term), with aggregated information on balances and external debt flows, quarterly and until the first half of the following quarter in Form DEX 06/98 (Annex 6).

Entities in the financial sector (banks, mutuals, finance companies, funds, and others) will provide quarterly information on the external indebtedness they guarantee or back for private entities or natural persons in Form DEX 07/98 (Annex 7).

Article 18.- The International Affairs Management of the BCB will periodically request information from external financiers regarding the external indebtedness of the Bolivian private sector.

Article 19.- In case of discrepancy between the information provided by debtors and creditors, the Central Bank of Bolivia will request a copy of the documents supporting the external obligations reported by private institutions.

Article 20.- All information obtained will be incorporated into SIGADE and will be protected by the bank secrecy established in Article 80 of Law 1670.

CHAPTER IV OFFICIAL EXTERNAL DEBT STATISTICAL INFORMATION

Article 21.- The International Affairs Management of the BCB will administer SIGADE, periodically generating the official statistical information on the country's external debt.

Article 22.- Executive summaries of the Public External Debt Statements of the country will be sent by the International Affairs Management of the BCB monthly until the 20th day of the following month, to the authorities of the Ministry of Finance and the Central Bank of Bolivia.

Article 23.- At the request of the executing or debtor institution, the Central Bank of Bolivia will provide updated statistical information on the external debt of said institution.

Article 24.- The Central Bank of Bolivia will publish information on External Debt in its monthly and quarterly Bulletins, as well as in its Annual Report.

Article 25.- The BCB, semi-annually, will reconcile the balances of external credits with public and private institutions that have public external debt.

CHAPTER V OPERATIONAL PROCEDURES

Article 26.- The technical and operational procedures regarding the registration of the country's public and private external debt will be included in the procedure manuals of the International Affairs Management of the BCB.

Article 27.- The forms for reporting information on External Debt may be modified by the General Management of the Central Bank of Bolivia at the request of the International Affairs Management.