Resolution 114/97 Determining Operating Accounts for Financial System Entities

BOARD RESOLUTION NO. 114/97
SUBJECT: ACCOUNTING - DETERMINES OPERATING ACCOUNTS FOR ENTITIES OF THE FINANCIAL SYSTEM.

VIEWED:
The Law 1670 of October 31, 1995.
The Law 1488 of April 14, 1993.
The Board Resolutions of the BCB 142/93 of November 23, 1993, 149/93 of December 7, 1993, 150/93 of December 7, 1993, 027/95 of April 4, 1995, and 148/95 of November 23, 1995. The Report of the Legal Affairs Unit No. U-AJ 093/97 of May 5, 1997. The Report of the Accounting Management No. 284/97 of May 7, 1997.

CONSIDERING:
That the BCB Board Resolutions 142/93 and 148/95 establish the legal reserve account for financial entities to constitute the minimum legal reserve, while the BCB Board Resolutions 149/93, 150/93, and 027/95 determine other types of accounts that financial entities must maintain to carry out operations with CDs, LTs, and Swaps.

That it is necessary to simplify the times and movements of the operational procedure for the constitution of the minimum legal reserve, as well as for the other operations carried out by financial entities with the BCB.

That according to the aforementioned reports, it is necessary to rationalize the procedure for the constitution of the minimum legal reserve in order to give greater agility to the operations of the Accounting Management.

Therefore,

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

Article 1.- For the constitution of the minimum legal reserve of the entities of the financial system, the sum of the balances of the current and reserve accounts, enabled at the BCB, by type of currency, will be taken into account.

Article 2.- The purchase of foreign currency through the Bolsín, the acquisition of public titles issued by the BCB and by the TGN, as well as the other operations carried out by the entities of the financial system with the BCB, will be effected through debit to the current accounts that they hold at the moment of requesting the operation.

Those entities of the financial system that do not maintain current accounts at the BCB may request, when they have availability, the charge to their minimum legal reserve accounts.

Financial entities that do not maintain current accounts nor a reserve account at the BCB, will carry out said operations through the banking system or by paying the fund provision to the account "Diverse Creditors-Operations of LTs, CDs or Swaps" at the BCB.

Article 3.- Checks drawn against the current accounts of the entities of the financial system that do not have sufficient fund provision in them, will be covered with transfers from the minimum legal reserve account, provided that there are available resources after deducting the reserve constituted in funds in custody.

Article 4.- Transfers for the operations of current account coverage with the legal reserve will have a commission of Bs300.- (three hundred 00/100 bolivianos) to cover operational costs.

Transfer letters from one account to another, that do not have sufficient funds, will not be processed. Nevertheless, they will have a charge of Bs300 (three hundred 00/100 bolivianos) to cover operational costs.

These commissions and charges will be incorporated each year in the Table of Terms and Conditions for the collection of Commissions of the BCB, updating their value based on the Consumer Price Index.

Article 5.- The following provisions are left without effect:

• Article 7, second paragraph, of the BCB Board Resolution 142/93 of November 23, 1993.
• Article 13, item a), of Board Resolution 149/93 of December 7, 1993.
• Article 23, item a), of Board Resolution 150/93 of December 7, 1993.
• Article 9, item a), of Board Resolution 027/95 of April 4, 1995.
• Article 1, second paragraph, of Board Resolution 148/95 of November 23, 1995.

Article 6.- This Resolution will enter into force on July 1, 1997.

Article 7.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

3.VI.97
____________________ Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G. Juan Medinacelli V.

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Fernando Campero P. Edgar Millares A.