Resolution 109/2005

BOARD RESOLUTION NO. 109/2005

SUBJECT: MONETARY OPERATIONS MANAGEMENT
MODIFIES BOARD RESOLUTION NO. 146/97.

HAVING SEEN:
Law No. 1670 of October 31, 1995.
Supreme Decree No. 27328 of January 31, 2004.
Ministerial Resolution No. 110 of March 15, 2004, which regulates Supreme Decree No. 27328.
The Statute of the Central Bank of Bolivia of December 13, 2001, and its subsequent modifications.
The Correspondency Regulation approved by Board Resolution No. 146/97 of September 2, 1997.
The report from the Monetary Operations Management GOM-SOSP 017/2005 of September 5, 2005.
The Report from the Legal Affairs Management SANO No. 196/2005, of September 6, 2005.

CONSIDERING:
That Law No. 1670 in its articles 24, 29 subsection g), 37, and 38 subsections a), c), and f), establishes that the Central Bank of Bolivia (BCB) may delegate, through competitive mechanisms, the administration of fiscal accounts to other banks and financial entities.

That Supreme Decree No. 27328 and its regulations establish the rules for the hiring and acquisition of goods and services in public entities.

That the BCB Statute, in concordance with what is provided by Law No. 1670, stipulates that the Board has the authority to approve general decisions and issue norms necessary for the fulfillment of its functions, competencies, and powers emanating from the mandate of said Law.

That said legal norms indicate that the Board has the authority to approve, modify, and interpret the BCB Regulations, by two-thirds of the votes of all its members, without the need for an additional administrative act, and the regulation of the services that the BCB provides as a financial agent.

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That Article 67 numeral 2 of the BCB Statute establishes that the Monetary Operations Management is responsible for executing and controlling Treasury operations, the Payment System, and Credit to the General Treasury of the Nation.

That the Correspondency Regulation in its article 2 determines that its object is to regulate the correspondency operations carried out by financial entities contracted by the BCB and points out, in an enumerative manner, the operations to be executed by financial entities by virtue of correspondency on behalf of the BCB, among which are the payment of salaries of public servants and beneficiaries of pensions.

That through Report GOM-SOSP 017/2005, it is recommended to the BCB Board to modify Article 15 of the Correspondency Regulation, in order to flexibly adapt the subcontracting of services from non-financial entities, to optimize the provision of correspondency services efficiently, without in any case allowing the Delegated Administrator to transfer or delegate their responsibility.

That the Legal Affairs Management in its report SANO No. 196/2005 states that the modification of Article 15 of the Correspondency Regulation does not contravene what is provided by Law No. 1670, for which reason, the Board in the exercise of its powers, has full competence to consider the requested modification.

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

Article 1.- Modify Article 15 of the Correspondency Regulation approved by Board Resolution No. 146/97, under the following terms:

SAYS:
Article 15. (Subcontracting of Services). The awarded financial institution may subcontract the services of financial entities authorized by the S.B.E.F. to provide correspondency services in districts or zones of the country where there are no bank branches or agencies. In this case, the financial institution must inform the B.C.B. and send it a copy of the contract. The responsibility for the provision of the service shall be exclusive to the institution to which the correspondency service provision was awarded, without it being able, under any circumstances,

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SHOULD SAY:
“Article 15. (Subcontracting of Services). The awarded financial institution may subcontract the services of financial entities authorized by the S.B.E.F. to provide Delegated Administration services, only in districts or zones of the country where it does not have an agency or branch. In all awarded districts, the financial institution may subcontract the services of non-financial entities, to fulfill cash handling functions in the Payment Cancellation Service for Public Officials and Pension Beneficiaries. In both cases, the financial institution must inform the B.C.B. and send it a copy of the contract. The responsibility before the B.C.B. and the G.T.N. for the provision of the service in its entirety shall be exclusive to the awarded institution, without it being able, under any circumstances, to transfer said responsibility to the subcontracted entity.”

Article 2.- This Resolution shall enter into force on the day of its approval.

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

La Paz, September 6, 2005

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Juan Antonio Morales A.
____________________ ____________________ ____________________ Fernando Paz B. José Luis Evia V. Jaime Apt B.