Resolution 164/2011

BOARD RESOLUTION NO. 164/2011
SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – APPROVES MODIFICATION TO THE REGULATION FOR OPERATIONS OF ACCOUNTS IN BOLIVIANOS WITH VALUE MAINTENANCE RELATIVE TO THE HOUSING DEVELOPMENT UNIT (UFV)

HAVING SEEN:
Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB).
Law No. 2434 of December 19, 2002, on Updating and Value Maintenance.
Supreme Decree No. 26390 of November 8, 2001, which creates the Housing Development Unit.
Supreme Decree No. 27028 of May 8, 2003, which regulates Law No. 2434.
Board Resolution No. 017/2003 of February 6, 2003, and its subsequent modifications, which approves the Regulation for Operations of Accounts in Bolivianos with Value Maintenance relative to the UFV.
The Reports from the International Operations Management BCB-GOI-INF-2011-4 of November 3, 2011, and BCB-GOI-INF-2011-7 of December 19, 2011.
The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2011-478 of December 20, 2011.

CONSIDERING:
That Law No. 1670 defines the functions of the BCB as Financial Agent of the Government and also establishes the functions of the Issuing Entity in relation to the Public Sector.

That Law No. 2434 regulates the application of the UFV, establishing in its Article 3, paragraph II, that the funds assigned to the Municipal Solidarity Fund and the balances owed by the General Treasury of the Nation as of December 31, 2002, for internal obligations arising from the HIPC II external debt relief program, shall be updated relative to the UFV in effect at the time of payment, published by the Central Bank of Bolivia.

That Supreme Decree No. 26874 regulates the benefits and management of the Universal Maternal and Infant Insurance (SUMI). This Decree in its Article 11, paragraph IV, authorizes the Ministry of Health and Social Prevision to open the National Solidarity Fund Account, at the BCB, in Bolivianos, according to the value maintenance established by the UFV.

That Article 10 of Supreme Decree No. 27028 provides that the accounts of the “Municipal Solidarity Fund for Health and Education” and “Diálogo 2000” originating from the obligations of the HIPC II External Public Debt Relief Program destined for the different Municipal Governments and the health and education sectors, shall be registered by the BCB in UFV.

That the International Operations Management, through Reports BCB-GOI-INF-2011-4, mentions that currently assuming the costs of indexation of the accounts in UFV, specifically of the account “Relief beyond HIPC II”, is generating significant negative exchange rate variations that affect the Balance Sheet of the BCB and its Equity. Under this argument, through Report BCB-GOI-INF-2011-7, the GOI recommends the modification of Article 10 and the inclusion of Article 12 in the Regulation for Operations of Accounts in Bolivianos with Value Maintenance relative to the UFV.

That the Report from the Legal Affairs Management BCB-GAL-SANO-INF-2011-478 establishes that the proposal for modifications to the Regulation for Operations of Accounts in Bolivianos with Value Maintenance relative to the UFV does not contravene the current legal framework, corresponding to the Board of the Issuing Entity to consider its approval.

That the Board of the BCB, in its capacity as the highest authority of the Institution, is responsible for defining its policies, specialized regulations of general application, and internal rules, being empowered to issue the norms and adopt the general decisions that may be necessary for the fulfillment of the functions, competencies, and powers assigned by Law to the Issuing Entity, as established in Articles 44 and 54, subsection o) of Law No. 1670.

THEREFORE

THE BOARD OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify Article 10 of the Regulation for Operations of Accounts in Bolivianos with Value Maintenance relative to the Housing Development Unit (UFV) approved with Board Resolution No. 017/2003 in the following manner:

SAYS:-
Article 10.- (Closure of Accounts)
The closure of the Accounts indicated in Article 3 of this Regulation may be carried out upon written request of the Ministry of Economy and Public Finance.

SHOULD SAY:-
“Article 10.- (Closure of Accounts)
The closure of the Accounts indicated in Article 3 of this Regulation may be carried out upon written request of the Ministry of Economy and Public Finance or within the framework provided for in Article 12.”

Article 2.- Include in Chapter III “Procedure for Operations” of the Regulation for Operations of Accounts in Bolivianos with Value Maintenance relative to the UFV, Article 12 with the following wording:

“Article 12.- (Termination of maintenance of accounts at the BCB)
I. The Board of the Central Bank of Bolivia, through express Resolution, may order the termination of the maintenance of UFV accounts opened at the BCB, except for the Diálogo 2000 and Municipal Solidarity Fund for School Education and Public Health accounts. To this effect, the BCB will communicate to the TGN the date until which the account or accounts will have value maintenance relative to the UFV at the expense of the BCB.
II. The TGN may choose to assume this value maintenance, for which it must authorize the daily debit of its accounts. Otherwise, on the date established in paragraph I of this article, the resources of the account or accounts will be made available to the TGN in a payable account in Bolivianos, enabled for this effect.”

Article 3.- The modifications approved in Articles 1 and 2 of this Resolution will enter into force from the date of its approval.

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

La Paz, December 20, 2011

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Marcelo Zabalaga Estrada

_________________________ _________________________ Hugo Dorado Araníbar Rolando Marín Ibáñez

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Gustavo Blacutt Alcalá Ernesto Yáñez Aguilar Rafael Boyán Téllez