Regulatory Alerts1999-12-07 | Resolución 110/99Added · Updated
Resolution 110/99 Authorizing Asset Acceptance in Payment for BBA Credit Line Cancellation
The Board of Directors of the Central Bank of Bolivia authorizes the acceptance and accounting registration of assets offered by the Boliviano Americano Bank (BBA) in payment to cancel a restricted credit line valued at US$9,645,375.83. The administration must verify that these assets are received according to the valuation rules specified in the credit contract dated September 22, 1999, and may request documentation or substitute assets if necessary. The President is authorized to sign the respective contract with the BBA's Selling Agent, while the Presidency and General Management are responsible for executing this resolution.
BOARD RESOLUTION NO. 110/99
SUBJECT: FINANCIAL ENTITIES MANAGEMENT – AUTHORIZES THE RECEIPT OF ASSETS IN PAYMENT IN LIEU TO CANCEL THE RESTRICTED CREDIT LINE GRANTED TO BBA ON SEPTEMBER 14, 1999.
HAVING SEEN: Law 1670 of October 31, 1995. Law 1977 of May 14, 1999. Resolution SB No. 053/99 of the Superintendence of Banks and Financial Entities (SBEF) dated May 14, 1999. Board Resolution of the Central Bank of Bolivia (BCB) No. 076/99 of September 14, 1999. Note SGO-E No. 367 of the Central Bank of Bolivia dated December 13, 1999. Note IL-FCU-336-99 of the Selling Agent of the Boliviano Americano Bank S.A. (BBA) dated December 14, 1999. Report from the Financial Entities Management GEF 207/99 dated December 14, 1999. Report from the Legal Affairs Management GAL 249/99 dated December 14, 1999.
CONSIDERING: That the Central Bank of Bolivia, in application of Law 1977 and through Board Resolution No. 076/99, granted to BBA on September 14, 1999, a Restricted Credit Line of up to US$18,056,033 as part of the financial support for its forced sale process.
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That the balance of principal and accrued interest of said Line stands at US$9,645,375.83 as of the date.
That through note SGO-E No. 367/99, the BCB notified BBA that the aforementioned Restricted Credit Line matures on December 14, 1999.
That by note IL-FCU-336-99 of the date, the Selling Agent of BBA proposes to cancel the aforementioned Restricted Credit Line with assets in payment in lieu, following the analysis of the portfolio and available assets carried out jointly with the consultant assigned by the BCB.
That according to the reports from the Financial Entities Management and Legal Affairs Management, in accordance with the Seventh Clause of the Credit Line Contract signed between the BCB and BBA on September 22, 1999, the offered portfolio must be received at net value after provisions, the realizable assets at the value of the adjudication testimony, and the assets for use at market value.
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:
Article 1.- Authorize the Administration of the BCB to receive and account for the assets proposed in payment in lieu by BBA through note IL-FCU-336-99, in the amount of US$9,645,375.83 and whose details appear in the annex, to cancel the Restricted Credit Line approved by Board Resolution No. 076/99 of September 14, 1999.
Article 2.- The Administration shall be responsible for verifying that the assets offered in payment in lieu are received in accordance with what is established in the Seventh Clause of the Credit Line Contract signed between the BCB and BBA on September 22, 1999, as well as requesting the respective supporting documentation and, if applicable, requesting the substitution of assets with others more convenient for the BCB.
Article 3.- Authorize the President to sign the respective contract with the
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Selling Agent of BBA.
Article 4.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.
La Paz, December 14, 1999
Juan Antonio Morales A.
Armando Pinell S. Jaime Ponce G. Armando Méndez M.
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