Resolution 119/2008 Approving the Regulation for the Registration of Foreign Private Capital in Bolivia

BOARD RESOLUTION NO. 119/2008
SUBJECT: ECONOMIC POLICY MANAGEMENT – APPROVES REGULATION FOR THE REGISTRATION OF FOREIGN PRIVATE CAPITAL IN BOLIVIA.

VIEWED:
Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB).
Board Resolution No. 113/2003 of October 7, 2003, which approves the Regulation for the registration of Bolivia's public and private external debt.
Board Resolution No. 128/2005 of October 21, 2005, which approves the Statute of the BCB.
Board Resolution No. 101/2008 of July 22, 2008, which approves the new organizational structure of the BCB.
Report from the Economic Policy Management APEC/SEXT-042/2008 of September 30, 2008.
Report from the Legal Affairs Management SANO 268/2008 of October 6, 2008.

CONSIDERING:
That Law 1670 in its articles 20, 21, 43, and 80 establishes that the Central Bank of Bolivia is the institution responsible for regulating financial operations with foreign countries (external assets and liabilities), keeping the register of Bolivia's private external debt, periodically publishing statistical and economic information, and keeping secret the affairs and operations of the BCB, as well as related documents or reports.

That the Statute of the BCB in article 11, numerals 24 and 25, determines that the Board will regulate financial operations with the exterior carried out by public and private persons or entities and will approve the regulations relative to the registration of public and private debt.

That the new organizational structure of the BCB (RD 101/08) creates the Survey and Indicators Team, dependent on the Economic Policy Management, which will be responsible for collecting and processing information on Foreign Private Capital, including private external debt.

That the Economic Policy Management in its Report APEC/SEXT-042/2008, recommends the approval of the “Regulation for the Registration of Foreign Private Capital” which includes the Registration of Private External Debt, to regulate the collection of balances and flows of the different variables that make up Foreign Private Capital.

That according to the Report from the Legal Affairs Management SANO 268/2008, there is no legal impediment for the Board of the Issuing Entity, in exercise of the powers determined in Law 1670 and the Statute of the BCB, to consider the regulation for the Registration of Foreign Private Capital.

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

Article 1.- Approve the Regulation for the Registration of Foreign Private Capital, which is attached and forms an integral part of this Resolution.

Article 2.- This Regulation shall enter into force from the date of its approval.

Article 3.- Repeal Board Resolution No. 113/2003 of October 7, 2003.

Article 4.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, October 7, 2008

---

Raúl Garrón Claure

---

Gustavo Blacutt Alcalá Hugo Dorado Araníbar

---

Rolando Marín Ibáñez Osvaldo Nina Baltazar Ernesto Yáñez Aguilar

//2. B.D. No. 119/2008

ANNEX
REGULATION FOR THE REGISTRATION OF FOREIGN PRIVATE CAPITAL

CHAPTER I
GENERAL PROVISIONS

Article 1.- Object
This Regulation aims to establish norms and procedures through which the BCB will carry out the collection, compilation, registration, and official publication of data on Bolivia's private external debt, foreign direct investment, portfolio investment, other investment, other external assets and liabilities, investment income, selected external trade in services, and other transactions with the exterior.

Article 2.- BCB Attributes
Subject to what is provided in articles 20, 21, and 43 of Law 1670 of October 31, 1995, the BCB is the Institution responsible for regulating financial operations with the exterior, keeping the register of Bolivia's private external debt, other external assets and liabilities, investment income, selected external trade in services, and other transactions with the exterior.

Article 3.- Responsible Management
The Economic Policy Management of the BCB is responsible for executing this regulation, and must report semi-annually to the Board on the status and registration of Foreign Private Capital.

CHAPTER II
REPORTING AND REGISTRATION OF INFORMATION

Article 4.- Information Reporting and Certification of Registration
I. Private entities and natural persons who contract a credit or any other medium- and long-term external debt must report this information to the BCB, within a period of 30 days from the signing of the contracts or the incurrence of the obligation, in the forms that the Issuing Entity will make available to them. The BCB will assign a control number to each registered external obligation.

II. The reporting of short-term credits contracted by the private sector will be subject to what is provided in Article 5 of this regulation.

III. Other external assets and liabilities other than private external debt, contracted by the private sector, must be reported to the BCB, on a quarterly basis, as established in Article 5 of this Regulation.

IV. At the request of private entities and natural persons, the BCB will certify the registration of private external debt.

Article 5.- Quarterly Reporting of Balances and Flows of Foreign Private Capital
Private entities and natural persons must send to the Economic Policy Management of the BCB the information on their assets and liabilities with the exterior and other variables established in Article 1 of this Regulation, corresponding to the previous quarter, individually and specifying the type of instrument, until the first fortnight of the following quarter, in the forms provided in the following Article.

Article 6.- Form for Information Reporting
The BCB through the Economic Policy Management will make available to the private sector the forms for reporting the flows and balances of private external debt, other assets and liabilities with the exterior, investment income, external trade in services, and other transactions with the exterior, which will be available on the BCB's website. The General Management of the BCB will approve and/or modify the forms referred to in this article, at the request of the Economic Policy Management.

Article 7.- Complementary Information
I. The BCB through the Economic Policy Management, based on information needs, will request complementary information or other variables of interest to the BCB from the private sector.

II. In order to reconcile data and make annual adjustments in the different variables that make up Foreign Private Capital, the BCB may request private entities to send Annual Reports or Financial Statements corresponding to them.

III. The BCB, in order to have information from external financiers or creditors, may request from them information on financing and investments made in Bolivia.

Article 8.- Discrepancies in Information
//5. B.D. No. 119/2008
In the event of discrepancies between the quarterly information provided by the private sector and that recorded in the BCB's records; it may request copies of the documents supporting the balances and flows of the reported transactions.

Article 9.- Registration of Information
Information on medium- and long-term private external indebtedness will be incorporated into the Debt Management and Analysis System (SIGADE). Information on short-term debt, foreign direct investment, portfolio investment, other investment, other external assets and liabilities, investment income, selected external trade in services, and other transactions with the exterior, will be registered in a database designed for that purpose.

Article 10.- Non-Reporting of Information
In the event that private entities and natural persons carrying out operations subject to this Regulation do not report the information requested by the BCB within the established deadlines, the BCB will bring this situation to the attention of the Ministry of Planning and Development so that this Institution adopts the corresponding measures.

CHAPTER III
PUBLICATION AND DISSEMINATION OF FOREIGN PRIVATE CAPITAL STATISTICS

Article 11.- Confidentiality
The information provided by private entities and natural persons to the BCB regarding Foreign Private Capital will be confidential under Article 80 of Law 1670 of October 31, 1995 and will be used within the framework of this regulation.

Article 12.- Dissemination of Information on Foreign Private Capital
The Economic Policy Management of the BCB will generate and publish in its bulletins, Annual Report, and website the official statistical information of the country's Foreign Private Capital in an aggregated manner.

• 0 -