Regulatory Alerts1999-12-21 | Resolución 114/99Added · Updated
Resolution 114/99
The Board of Directors of the Central Bank of Bolivia authorizes Banco Boliviano Americano to establish provisions for a purchased loan portfolio with a repurchase agreement over a six-year period from 1999 to 2004. The resolution mandates specific annual provision amounts ranging from $6,000,000.00 in 1999 to $10,326,304.00 in 2004 to distribute potential losses associated with the portfolio delivered via irregular commercial deposit. The Presidency and General Management are tasked with executing and ensuring compliance with this resolution.
BOARD RESOLUTION NO. 114/99
SUBJECT: FINANCIAL ENTITIES MANAGEMENT – PROVISIONS FOR THE PORTFOLIO PURCHASED IN 1996 FROM BBA WITH REPURCHASE AGREEMENT.
HAVING REVIEWED:
Law 1670 of October 31, 1995.
The reports from the Financial Entities Management Department SGO.I. 676/99 and SGO.I.700ª/99 dated December 15 and 21, 1999.
The Report from the Accounting Management Department G.CONT.I. 1591/99 dated December 21, 1999.
The Report from the Legal Affairs Management Department GAL 259/99 dated December 21, 1999.
CONSIDERING:
That the Financial Entities Management Department, applying the accounting principle of Prudence, recommends establishing provisions for the portfolio purchased in 1996 from the Banco Boliviano Americano with a repurchase agreement and delivered to said financial entity via irregular commercial deposit.
That since BBA was intervened for forced sale in May 1999, it is necessary to distribute the potential losses of the portfolio mentioned in the preceding paragraph over several fiscal years.
That according to subsection a) of Article 54 of Law 1670, the Board of Directors has the authority to issue norms and adopt general decisions that are necessary for the Central Bank of Bolivia (BCB) to fulfill the functions, competencies, and powers assigned to it by said legal provision.
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:
//2. R.D. No. 114/99
Article 1.- Authorize the establishment of provisions over six years starting from the fiscal year 1999, for the portfolio purchased in 1996 from BBA with a repurchase agreement and delivered to said financial entity via irregular commercial deposit, according to the following schedule:
Fiscal Year 1999 $us 6,000,000.00 Fiscal Year 2000 $us 7,500,000.00 Fiscal Year 2001 $us 9,000,000.00 Fiscal Year 2002 $us 9,800,000.00 Fiscal Year 2003 $us 10,000,000.00 Fiscal Year 2004 $us 10,326,304.00
Article 2.- The Presidency and General Management are charged with the execution and compliance of this Resolution.
La Paz, December 21, 1999
Juan Antonio Morales A.
Armando Pinell S. Jaime Ponce G.
Fernando Campero P. Armando Méndez M.
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