Regulatory Alerts2007-12-18 | Resolución 158/2007Added · Updated
Resolution 158/2007
The Board of Directors of the Central Bank of Bolivia expands the powers of the Credit Recovery Committee under Article 13 of the Regulation for the Collection of Past-Due Old Portfolio. The Committee is now authorized to waive 100% of penal and moratory interest when debtors of past-due and executed portfolios request in writing the total cancellation of their debt, including principal, current interest, legal costs, and attorney fees, provided the payment is made in cash and in a single lump sum. This measure applies specifically to debtors seeking to settle their obligations with the Central Bank of Bolivia under these strict conditions.
BOARD RESOLUTION NO. 158/2007 SUBJECT: FINANCIAL ENTITIES MANAGEMENT – APPROVES WAIVER OF PENAL AND MORATORY INTERESTS FOR THE RECOVERY OF THE PORTFOLIO OF ENTITIES IN LIQUIDATION.
HAVING SEEN: Law No. 1670 of October 31, 1995. Board Resolution No. 053/1999 of June 22, 1999. Board Resolution No. 061/2003 of June 6, 2003. Board Resolution No. 092/2004 of June 29, 2004. Board Resolution No. 072/2005 of May 24, 2005.
The Report GEF SRRA No. 771/2007 of December 14, 2007 from the Financial Entities Management. The Report SAJU No. 327/2007 of December 13, 2007 from the Legal Affairs Management.
CONSIDERING: That Article 54, subsections j) and n) of Law No. 1670 grants the Board of Directors of the Central Bank of Bolivia "the authority to set and modify interest rates on credits granted by the BCB, taking into account market rates for similar operations and establishing their other terms and conditions, as well as formulating policies regarding the internal management of the BCB, supervising its execution."
That Board Resolution No. 053/99 approves the Regulation for the Collection of Past-Due Old Portfolio.
That Board Resolution No. 061/2003 resolves to renew, with an effective date of June 1, 2001, the validity of Chapters II (Credit Recovery Committee) and V (Write-off of Unrecoverable Portfolio) of the Regulation for the Collection of Past-Due Old Portfolio, until the total conclusion of the administration of the Past-Due Old Portfolio.
That Board Resolution No. 092/2004 approves the waiver of penal interest, court costs, legal expenses, and other administrative expenses for the recovery of the written-off portfolio of Entities in Liquidation.
That Board Resolution No. 072/2005 authorizes the Credit Recovery Committee in its Article 13, subsection e) "to authorize the waiver of penal interest, for the total early cancellation of credits under the financial conditions of the last contractual document."
That the Report from the Financial Entities Management GEF SRRA No. 771/2007 recommends expanding the powers of the Credit Recovery Committee in Chapter II, Article 13 of the Regulation for the Collection of Past-Due Old Portfolio to authorize the waiver of 100% of Penal and Moratory Interest when debtors of the past-due old portfolio and in execution request in writing the total cancellation of their debt to principal and current interest, legal costs, and attorney fees in cash and in a single payment.
That the Report from the Legal Affairs Management SAJU No. 327/2007 states that it corresponds to the Institution's Board of Directors, according to the attribution contained in Article 54, subsection q) of Law No. 1670 and numeral 37) of Article 11 of the Statute of the BCB, to expand the waiver of penal interest for those credits that are in execution and where there is an intention on the part of the debtor to fulfill the payment of their obligation with the BCB.
THEREFORE: THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Expand the powers of the Credit Recovery Committee within Chapter II, Article 13 of the Regulation for the Collection of Past-Due Old Portfolio, approved by Board Resolution No. 053/1999 of June 22, 1999, in the following manner:
SAYS: "Article 13 (Powers). - The Credit Recovery Committee shall have the following Powers: a) Take note of the Restructuring of credits under the conditions stipulated in this regulation. b) Approve the write-off of credits. c) Approve manuals and complementary procedures that are necessary for the recovery of credits. d) Authorize the Publication of delinquent, overdue, or in execution debtors who do not have a known domicile, in oral or written press media of national and local circulation. e) Authorize the waiver of penal interest, for the total early cancellation of credits under the financial conditions of the last contractual document."
SHOULD SAY: "Article 13 (Powers). - The Credit Recovery Committee shall have the following Powers: a) Take note of the Restructuring of credits under the conditions stipulated in this regulation. b) Approve the write-off of credits. c) Approve manuals and complementary procedures that are necessary for the recovery of credits. d) Authorize the Publication of delinquent, overdue, or in execution debtors who do not have a known domicile, in oral or written press media of national and local circulation. e) Authorize the waiver of penal interest, for the total early cancellation of credits under the financial conditions of the last contractual document. f) Authorize the waiver of 100% of Penal and Moratory Interest when debtors of the past-due old portfolio and in execution request in writing the total cancellation of their debt to principal and current interest, legal costs, and attorney fees in cash and in a single payment."
Article 2.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.
La Paz, December 18, 2007
Raúl Garrón Claure
Gustavo Blacutt Alcalá Hugo Dorado Araníbar
Rolando Marín Ibáñez Ernesto Yáñez Aguilar Osvaldo Nina Baltazar
More like this from BCB
BCB published 7 documents in the last 30 days. We email you each new one the day it's published.