Regulatory Alerts1998-09-15 | Resolución 089/98Added · Updated
Resolution 089/98
The Board of Directors of the Central Bank of Bolivia authorizes the partial subrogation of fixed-term deposits held at BIDESA that were established after October 31, 1997. This authorization permits cash payments up to US$5,000 and the issuance of Certificates of Deposit (CDDs) for larger amounts, strictly limited to depositors whose accounts have been reviewed and classified as "without observation" by the Liquidator of BIDESA. The Liquidator is responsible for certifying the legitimacy of these deposits, and the Superintendence of Banks and Financial Entities retains the authority to initiate legal recovery actions if subsequent observations arise regarding the validity of the returned funds.
BOARD RESOLUTION NO. 089/98
SUBJECT: FINANCIAL SYSTEM - AUTHORIZATION NO. 7 FOR THE PARTIAL SUBROGATION UP TO $US. 5,000.- IN CASH AND FOR LARGER SUMS THROUGH THE ISSUANCE OF CDDs, OF DEPOSITS CONSTITUTED IN BIDESA AFTER OCTOBER 31, 1997.
HAVING SEEN: Law 1670 of October 31, 1995. Board 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. Note IL BIN No. 777/98 from the Liquidator Superintendent of the International Development Bank S.A. dated September 9, 1998, which corrects and complements notes IL-BIN-693/98 and 712/98. Report from the Legal Advisory ALEG No. 318/98 dated September 10, 1998. Report from the Financial System Management GSF No. 121/98 dated September 10, 1998.
CONSIDERING:
That Article 4 of Resolution No. 170/97 cited above establishes that the Board of Directors of the BCB will 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 lower than or equal to the balance on 31/10/97. b) If the difference between the balance on 12/12/97 and the balance on 31/10/97 is lower 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 Board of Directors of the BCB will expressly authorize the subrogation of deposits constituted in BIDESA after October 31, 1997, following a special review and "without observation (S/O)" classification by the Liquidator Superintendent.
That in compliance with the aforementioned provisions, the Liquidator Superintendent of BIDESA appointed by the SBEF requested authorization from the BCB, through notes IL-BIN-693/98, 712/98 and 777/98 dated August 7 and 18 and September 9, 1998, respectively, for the partial cash payment of fixed-term deposits up to the equivalent of $US 5,000 and, on the other hand, the subrogation through the issuance of CDDs of the fixed-term deposits listed in the attached statement, constituted in said financial entity after October 31, 1997.
That according to the current legal provisions, it corresponds to the Liquidator Superintendent, in his 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 subrogation, through cash payment 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 carried out by the Liquidator Superintendent, have been classified "without observation (S/O)" by said authority, under its responsibility, in the attached statement that forms part of this Resolution, sent to the BCB through note IL BIN No. 777/98 of September 9, 1998, which corrects and complements notes IL-BIN-693/98 and IL-BIN-712/98 of August 7 and 18, 1998 in the cases observed by the Financial System Management of the BCB.
Such return must be carried out in strict compliance with the rules, criteria, limits and procedures established in Board Resolution of the BCB No. 170/97.
Article 2.- Authorize the partial subrogation, through the issuance of CDDs, of fixed-term deposits constituted in BIDESA after October 31, 1997, only for those cases that after the special review carried out by the Liquidator Superintendent, have been classified "without observation (S/O)" by said authority, under its responsibility, in the attached statement that forms part of this Resolution, sent to the BCB through note IL-BIN No. 777/98 of September 9, 1998, which corrects and complements notes IL-BIN-693/98 and IL-BIN-712/98 of August 7 and 18, 1998 in the cases observed by the Financial System Management of the BCB.
Such subrogation must be carried out in strict compliance with the rules, criteria, limits and procedures established in the Board Resolutions of the BCB 170/97, 179/97, 020/98 and 033/98.
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 will correspond to the SBEF to initiate the pertinent legal actions for their respective recovery.
Article 4.- The Presidency and the General Management are entrusted with the execution and compliance of this Resolution.
La Paz, September 15, 1998
Juan Antonio Morales A.
Armando Pinell S. Jaime Ponce G.
Juan Medinaceli V. Fernando Campero P.
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