Regulatory Alerts2000-12-19 | Resolución 102/2000Added · Updated
Resolution 102/2000
The Board of Directors of the Central Bank of Bolivia authorizes the creation of additional provisions totaling $35,175,750.00 for doubtful recovery credits owed by Banco Internacional de Desarrollo S.A. in liquidation. This amount is to be allocated evenly at $7,035,150.00 annually across the fiscal years 2000 through 2004. The resolution further instructs the Financial Entities Management and Legal Affairs Management to continue collection actions against the entity.
BOARD RESOLUTION NO. 102/2000
SUBJECT: FINANCIAL ENTITIES MANAGEMENT – PROVISION FOR DOUBTFUL RECOVERY ACCOUNTS OF BANCO INTERNACIONAL DE DESARROLLO S.A. IN LIQUIDATION.
HAVING REVIEWED:
Law 1670 of October 31, 1995.
Board Resolution of the Central Bank of Bolivia No. 120/98 of December 22, 1998.
Reports from the Financial Entities Management SRRA-DRCA 254/180/2000 of November 15, 2000, SRRA-DRCA 294/206/2000 of December 12, 2000, and SRRA-DRCA 296/207/2000 of December 14, 2000.
The report from the Accounting Management G.CO. 06/2000 of December 14, 2000.
The note from the Legal Affairs Management SANO 233/2000 of November 24, 2000.
CONSIDERING:
That according to subsection a) of Article 54 of Law 1670, the Board has the authority to issue norms and adopt general decisions necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by that legal provision.
That the BCB Board, through Resolution 120/98, authorized the establishment of provisions from the fiscal year 1998 to the fiscal year 2002, at an annual amount of Bs31,962,844.20, to cover the possible irrecoverability of receivables of the BCB with BIDESA in Liquidation.
That the Financial Entities Management, through Report 296/207/2000, communicates the deterioration of BIDESA's assets and the consequent possible irrecoverability of BIDESA's receivables in liquidation by the BCB.
//2. R.D. No. 102/2000
That BIDESA does not currently have a Final Judgment, an aspect that influences the uncertainty of recovering the credits owed to the BCB.
That Board Resolution No. 120/98, in its Article 2, states that provisions may be increased through an express resolution of the Board, once the total amount of the issuance of CDDs for the purpose of deposit subrogation is determined.
That the Financial Entities Management, in its Reports SRRA-DRCA 254/180/2000, SRRA-DRCA 294/206/2000, and SRRA-DRCA 296/207/2000, determines that the provisions established and those to be established in compliance with Board Resolution No. 120/98 will not adequately cover the level of receivables, and therefore recommends increasing the provision amount.
That in the opinion of the Legal Affairs Management, it is the authority of the Board to consider the establishment of an additional provision to cover the possible irrecoverability of receivables of the BCB with BIDESA in Liquidation.
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:
Article 1.- Authorize the establishment of additional provisions to those authorized in Board Resolution No. 120/98, for doubtful recovery credits of Banco Internacional de Desarrollo S.A. in Liquidation, for a total amount of $35,175,750.00, in the fiscal years 2000 to 2004. The additional amount to be provided in each of the five fiscal years will amount to $7,035,150.00.
Article 2.- Instruct the Financial Entities Management and the Legal Affairs Management to continue collection actions against BIDESA in Liquidation.
//2. R.D. No. 102/2000
Article 3.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.
La Paz, December 19, 2000
Juan Antonio Morales A.
Armando Pinell S. Jaime Ponce G.
Juan Medinaceli V. Armando Méndez M.
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