Resolution 095/2000

BOARD RESOLUTION NO. 095/2000
SUBJECT: FINANCIAL ENTITIES MANAGEMENT – APPROVES MODIFICATIONS TO THE REGULATION ON THE COLLECTION OF OLD DELINQUENT PORTFOLIO.

HAVING SEEN:
Law No. 1670 of October 31, 1995.
Supreme Decree No. 25336 of March 29, 1999.
Board Resolution 053/99 of June 22, 1999.
Report from the Financial Entities Management and Legal Affairs Department GEF-SRRA No. 292-204/2000 of December 11, 2000.

CONSIDERING

That through Board Resolution No. 053/99, the Regulation on the Collection of Old Delinquent Portfolio was approved, regulating procedures for the recovery, restructuring, and/or write-off of delinquent, overdue, or judicially collected portfolio received by the BCB in administration and in transfer of ownership from the ex-INALPRE and the Banks in Liquidation of Crédito Oruro S.A., Progreso Nacional SAM, Potosí S.A., and Vivienda SAM.

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 54, paragraph j) of Law 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 terms and conditions.

That Report GEF-SRRA No. 292-204/2000 from the Financial Entities and Legal Affairs Departments recommends to the Board that payments and restructurings of the credits referred to in said report be deemed valid, and suggests, with the aim of not having a discriminatory policy, that the Board consider modifying Articles 6 and 15 of the Regulation on the Collection of Old Delinquent Portfolio, allowing debtors whose credits are in judicial execution with a sentence to avail themselves of the benefits granted in said Regulation, so that the BCB receives greater income in concept of recovery of old delinquent portfolio.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify the second paragraph of Article 6 of the Regulation on the Collection of Old Delinquent Portfolio, as follows:

SAYS:
Debtors who are in the process of judicial collection may avail themselves of the payment of said balance until before the sentence, also recognizing the sum corresponding to judicial costs.

SHOULD SAY:
“Debtors who are in the process of judicial collection may avail themselves of the payment of said balance, recognizing the sum corresponding to judicial costs.”

Article 2.- Modify Article 15 of the Regulation on the Collection of Old Delinquent Portfolio, as follows:

SAYS:
Article 15 (Total Advance Payment).- Debtors may cancel the total of their obligation at any time, provided that the judicial collection action has not reached a sentence. The total payment will be made through the purchase of 100% of the present value of the obligation, using the methodology established in Annex 1 of this Regulation.

SHOULD SAY:
“Article 15 (Total Advance Payment).- Debtors may cancel the total of their obligation at any time. The total payment will be made through the purchase of 100% of the present value of the obligation, using the methodology established in Annex 1 of this Regulation.”

Article 3.- Deem valid the payments and restructurings of the following credits:

Bank/ Debtor Modality Bs $us.
Payment Entity

Potosí Miriam Sánchez de Paniagua Restructuring 1,400.00 Potosí José Hugo Paniagua Arancibia Restructuring 2,500.00 Potosí Hugo Paniagua Acevedo Total 4,300.00 Progreso Raúl Mario Bustillos Urizar Restructuring 4,000.00 Progreso José Fernando Capriles Aguilar Restructuring 5,000.00 Ex-INALPRE Consuelo Lourdes Sandoval S. Restructuring 19,550.24 Total 4,300.00 32,450.24

Article 4.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, December 12, 2000

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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.