Resolution 147/97 Approving the Regulation for Operations of Special Accounts of the Public Sector

RESOLUTION OF THE BOARD OF DIRECTORS NO. 147/97 SUBJECT: CURRENCY AND CREDIT - APPROVES REGULATION FOR OPERATIONS OF SPECIAL ACCOUNTS OF THE PUBLIC SECTOR.

HAVING SEEN: Law No. 1670 of October 31, 1995. Board of Directors Resolution No. 123/92 of August 11, 1992. The Report of the Main Legal Advisory Office ALEG No. 131/97 of September 2, 1997. The Technical Report of the Currency and Credit Management No. 14/97 of August 15, 1997.

CONSIDERING: That Law No. 1670, in Chapter V of Title II, establishes the functions of the Central Bank of Bolivia as the Financial Agent of the Government. That Board of Directors Resolution No. 123/92 approves the Regulation for the Administration of Special Accounts. That it is necessary to update said norms, in order to adapt them to the new legal-administrative order of the Bank. That the technical and legal reports recommend the approval of the Regulation for Operations of Special Accounts of the Public Sector.

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

//2. R.D. No. 147/97 Article 1.- Approve the attached Regulation for Operations of Special Accounts of the Public Sector in its five chapters and 15 articles. Article 2.- Repeal Board of Directors Resolution No. 123/92 of August 11, 1992. Article 3.- The aforementioned Regulation shall enter into force on October 1, 1997. Article 4.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

2.IX.97

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Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G.

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Juan Medinacelli V.

//3. R.D. No. 147/97 REGULATION FOR OPERATIONS OF THE SPECIAL ACCOUNTS OF THE PUBLIC SECTOR

CHAPTER I TERMS AND DEFINITIONS

Article 1 (Terms and Definitions). The terms and definitions applicable to this Regulation are as follows:

B.C.B. Central Bank of Bolivia

Financing Agreement. Credit or donation agreement signed between the Republic of Bolivia and a foreign government or an international financing organization.

Subsidiary Agreement. Agreement for the use of resources from an external loan or donation, signed between the Republic of Bolivia represented by the Ministry of Finance and an institution or company of the public sector.

Special Account. Account opened at the B.C.B. in foreign currency through the Ministry of Finance, at the request of a Company or Institution of the Public Sector, as a result of an external Credit or Donation Agreement.

Fiscal Current Account. Current account of the Public Sector, opened in the Banking System, authorized by the T.G.N.

//4. R.D. No. 147/97 External Financing. Resources granted as credit or donation by Governments and International Organizations.

Authorized Signatories. Persons authorized before the B.C.B. to operate and request information related to the special account.

Account Holder. Institution or Company of the Public Sector beneficiary and executor of the resources of the special account.

CHAPTER II OBJECTIVE

Article 2 (Objective of the Regulation). This regulation aims to establish norms for the operations of the special accounts of the public sector, within the framework of Chapter V of Law 1670, which defines the functions of the B.C.B. as the financial agent of the government.

CHAPTER III REQUIREMENTS FOR THE OPENING OF A SPECIAL ACCOUNT

Article 3 (Application for Opening). The Ministry of Finance, at the request of the beneficiary public entity, will request the B.C.B. to open a Special Account, specifying the foreign currency of the account and justifying its necessity, for which it will attach the corresponding supporting documentation.

Article 4 (Required Documents). The documents necessary for the opening of a special account are the financing and/or donation agreement signed between the Republic of Bolivia and the financiers, as well as the

subsidiary agreement signed between the Republic and the Beneficiary of the credit.

//5. R.D. No. 147/97 Article 5 (Opening of the Account). The Currency and Credit Management will be responsible for processing the applications for the opening of special accounts.

CHAPTER IV PROCEDURE FOR OPERATIONS OF SPECIAL ACCOUNTS

Article 6 (External Disbursements). To execute disbursements destined for the special account, the B.C.B. will communicate to the Holder the account number of a correspondent bank abroad.

Article 7 (Disbursements in Different Currency). If disbursements are made by external financiers in a foreign currency different from that requested in the opening of the special account, the B.C.B. will process the disbursement in the currency of the account, at the exchange rate in effect on the day shown in the B.C.B. quotation table.

Article 8 (Local Transfers). Local transfers from the special account to fiscal or private current accounts will be made in national currency, at the purchase exchange rate of the foreign currency on the date the transfer is made.

Article 9 (Transfers Outside the Republic). Transfers outside the Republic will be made in the currency of the special account and will be subject to the commissions specified in the Table of Terms and Conditions for the Collection of Commissions and Other Income of the B.C.B.

Article 10 (Transfer Abroad in Different Currency). If a transfer abroad is requested in a currency different from that of the special account, the Holder will assume the commissions arising from the exchange operation, in addition to the commissions mentioned in Article 9 of this Regulation.

Article 11 (Authorized Signatories). Withdrawal requests must have two signatures legally accredited by the Holder of the special account at the B.C.B.

//6. R.D. No. 147/97 Article 12 (Withdrawal of Funds with a Single Signature). Exceptionally, withdrawal requests with a single signature will be processed when it concerns the Minister of Finance.

Article 13 (Commissions and Interests). The B.C.B. will not charge commissions nor pay interest for the management of special accounts.

CHAPTER V OF THE VALIDITY OF THE SPECIAL ACCOUNT

Article 14 (Closing of the Special Account). The closing of the special account will be carried out at the written request of the Ministry of Finance.

Article 15 (Closing of the Special Account for Lack of Activity). If the balance of the special account remains at zero and/or remains without activity for more than one year, the B.C.B. will proceed to the automatic closing of the special account, informing the Ministry of Finance thereof.

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