Resolution 169/97

RESOLUTION OF THE BOARD OF DIRECTORS NO. 169/97 SUBJECT: ECONOMIC POLICY ADVISORY - APPROVES MODIFICATION AND SUPPLEMENTATION OF ARTICLE 9 OF THE REGULATION FOR THE PATRIMONIAL ADEQUACY OF FINANCIAL INTERMEDIATION ENTITIES AND THE RISK WEIGHTING OF THEIR ASSETS AND CONTINGENCIES.

HAVING SEEN: Law 1670 of October 31, 1995. Board of Directors Resolution No. 143/97 dated August 19, 1997. Report APEC-ARNOR No. 044/97 from the Economic Policy Advisory dated November 28, 1997. Report ALEG No. 279/97 from the Legal Advisory dated December 2, 1997.

CONSIDERING: That it is necessary to facilitate long-term contractual operations, as well as to establish a risk weighting comparable to that of similar operations carried out by financial entities legally constituted in the country.

That to this effect, it is necessary to modify and supplement Article 9 of the Regulation for the Patrimonial Adequacy of Financial Intermediation Entities and the Risk Weighting of their Assets and Contingencies, approved by Board of Directors Resolution No. 143/97.

THEREFORE,

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

Article 1.- Modify Article 9, numeral II, subsection ix of the Regulation for the Patrimonial Adequacy of Financial Intermediation Entities and the Risk Weighting of their Assets and Contingencies, in the following terms:

"ix. Self-liquidating contingent operations, guaranteed by national or foreign top-tier banks, guaranteed by the same shipments, with a validity of less than one year, such as confirmed letters of credit, standby letters of credit, granted guarantees, counter-guaranteed guarantee bonds, discounted documents, committed credit lines. Guarantee bonds, counter-guaranteed with a validity of more than one year, will be qualified under this weighting provided they have been issued by top-tier financial entities from countries with an Aaa sovereign risk rating."

Supplement the aforementioned Article 9, with the incorporation into numeral II of subsection x, which appears below:

"x. Investments referred to in subsection i of the preceding numeral I, which have a maturity term between 2 and 5 years."

Article 2.- The modification and supplementation above shall enter into force on December 15, 1997.

Article 3.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

15.XII.97

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Juan Antonio Morales A.

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Armando Pinell S.

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Jaime Ponce G.

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Juan Medinacelli V.

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Juan Pablo Zegarra A.