Regulatory Alerts2004-06-29 | Resolución 092/2004Added · Updated
Resolution 092/2004
The Board of Directors of the Central Bank of Bolivia approves the forgiveness of penal interest, judicial costs, and administrative expenses for the recovery of written-off loans from four financial entities in liquidation: Banco de Crédito Oruro S.A., Banco del Progreso Nacional S.A.M., ex Banco de Potosí S.A., and ex INALPRE. This waiver is conditional upon borrowers paying the total debt in cash, consisting of the principal plus recalculated current interest at the Reference Interest Rate (TRE) plus five percentage points. The resolution mandates the General Management to execute and comply with these terms.
BOARD RESOLUTION NO. 092/2004 SUBJECT: FINANCIAL ENTITIES MANAGEMENT – APPROVES FORGIVENESS OF PENAL INTEREST, COURT COSTS, JUDICIAL EXPENSES AND OTHER ADMINISTRATIVE EXPENSES FOR THE RECOVERY OF THE WRITTEN-OFF PORTFOLIO OF ENTITIES IN LIQUIDATION.
HAVING SEEN: Law No. 1670 of October 31, 1995. Law on Government Administration and Control No. 1178 (SAFCO) of July 20, 1990. Board Resolution No. 053/1999 of June 22, 1999. Board Resolution No. 061/2003 of June 6, 2003. Report GEF SRRA No. 144/2004 of June 16, 2004 from the Financial Entities Management. Internal Communication from the Legal Affairs Management SAJU No. 339/2004.
CONSIDERING: That Article 54, items j) and n) of Law No. 1670 grants the Board of Directors of the Central Bank of Bolivia "the authority 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 its execution."
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 Board Resolution No. 053/99 approves the Regulation for the Collection of Old Delinquent Portfolio.
That Board Resolution No. 061/2003 resolves to renew, with an effective date of June 1, 2001, the validity of Chapters II (Credit Recovery Committee) and V (Write-off of Unrecoverable Portfolio) of the Regulation for the Collection of Old Delinquent Portfolio, until the total conclusion of the administration of the Old Delinquent Portfolio.
That the Report from the Financial Entities Management GEF-SRRA No. 144/2004, contemplates the analysis of pending payment obligations of the written-off portfolio of the Former Banco Potosí S.A.
That the Legal Affairs Management through Report SAJU No. 339/2004 concludes that the forgiveness must be submitted to the consideration of the Board of Directors of the BCB pursuant to Article 11, numeral 37 of the BCB Statute.
THEREFORE: THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Approve the forgiveness of penal interest, judicial costs, judicial expenses and other administrative expenses, for the recovery of the written-off credits of the Financial Entities in Liquidation: Banco de Crédito Oruro S.A., Banco del Progreso Nacional S.A.M., former Banco de Potosí S.A. and former INALPRE, provided that the borrower pays the total of their debt in cash in the currency of origin of the credit for capital plus the current interests recalculated at the Reference Interest Rate (TRE) in foreign currency or in national currency as applicable plus five percentage points, corresponding to the portfolio returned, received in dation in payment and in administration, for the entire period that the administration of the old written-off portfolio lasts.
Article 2.- The Presidency and General Management are charged with the execution and compliance of this Resolution.
La Paz, June 29, 2004
Juan Antonio Morales A.
Juan Medinaceli V. Enrique Ackermann A.
José Luis Evia V. Jaime Apt B.
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