Regulatory Alerts2007-01-16 | Resolución 6/2007Added · Updated
Resolution 6/2007
The Board of Directors of the Central Bank of Bolivia sets the maximum limit for foreign investments by insurance companies at 12% of their investment resources for the year 2007. This resolution supersedes previous limits and enters into force immediately. The Superintendence of Pensions, Securities and Insurance is instructed to authorize limits within this maximum, while the Presidency and General Management are tasked with executing and complying with the resolution.
BOARD RESOLUTION NO. 006/2007
SUBJECT: ECONOMIC POLICY ADVISORY - APPROVAL OF MAXIMUM LIMIT FOR FOREIGN INVESTMENTS BY INSURANCE COMPANIES.
HAVING SEEN:
Law 1670 of October 31, 1995. Law 1883 of June 25, 1998. Supreme Decree 25201 of October 16, 1998. Board Resolutions 026/99 of April 13, 1999, 044/2001 of May 29, 2001, 021/2003 of February 25, 2003, 012/2004 of January 27, 2004, 009/2005 of January 18, 2005, and 006/2006 of January 10, 2006. Technical Report APEC-INEP 001/2007 from the Economic Policy Advisory of APEC-INEP 002/2007 dated January 18, 2007. Report from the Legal Affairs Management SANO 018/2007 dated January 19, 2007.
CONSIDERING:
That Law 1883 on Insurance, in Article 35, establishes that the Central Bank of Bolivia will periodically set the maximum limit for investments by Insurance Companies in securities of issuers constituted abroad, which may not exceed fifty percent (50%) of investment resources.
That Supreme Decree 25201, in Article 18, determines that the Board of Directors of the Central Bank of Bolivia must annually set the maximum limit for foreign investments by Insurance Companies.
That Articles 6 and 14 of Law 1670 establish that the Central Bank of Bolivia must, in addition to fulfilling its monetary program, ensure the strengthening of International Reserves to allow for the normal functioning of Bolivia's internal and international payments.
That the Economic Policy Advisory, in its Technical Report APEC-INEP 002/2007, recommends increasing the percentage to twelve percent (12%) as the maximum limit for foreign investments by Insurance Companies during the 2007 management period.
That the Report from Legal Affairs Management SANO 018/2007 establishes that the draft Board Resolution setting the maximum limit for foreign investments by insurance companies does not contravene the current legal framework, and therefore it corresponds for the Board of Directors of the Issuing Entity to consider its approval.
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:
Article 1.- Set the maximum limit for foreign investment by Insurance Companies at twelve percent (12%) of their investment resources during 2007.
Article 2.- This Resolution shall enter into force from the date of issuance.
Article 3.- Communicate the aforementioned decision to the Superintendence of Pensions, Securities and Insurance, so that it may authorize limits within the maximum established by this Resolution.
Article 4.- The Presidency and General Management are charged with the execution and compliance of this Resolution.
La Paz, January 30, 2007
Raúl Garrón Claure
Enrique Ackermann Arguedas Hugo Dorado Aranibar
Jorge Casso Echart Hugo Argote Argote Gustavo Blacutt Alcalá
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