Resolution 7/2007

BOARD RESOLUTION NO. 007/2007
SUBJECT: ECONOMIC POLICY ADVISORY - APPROVAL OF MAXIMUM LIMIT FOR FOREIGN INVESTMENTS BY PENSION FUND ADMINISTRATORS.

HAVING VIEWED:
Law 1670 of October 31, 1995.
Law 1732 of November 29, 1996.
Supreme Decree 24469 of January 17, 1997.
Supreme Decree 25958 of October 21, 2000.
Technical Report from the Economic Policy Advisory APEC-INEP 001/2007 of January 18, 2006.
Report from the Legal Affairs Management SANO 019/2007 of January 22, 2007.

CONSIDERING:
That Pension Law 1732 in its Article 41 confers upon the Board of Directors of the Central Bank of Bolivia the authority to set the maximum limit of investments made by Pension Fund Administrators (AFPs) in securities of issuers constituted abroad.

That the Pension Law, in its Article 40, states that the AFP must invest the resources of the pension funds exclusively in securities and in financial markets authorized by the SPVS. Furthermore, the AFP must maintain, in securities custody entities or securities deposits authorized by the SPVS, at least 95% of the value of the pension funds.

That Articles 193 and 233 of Supreme Decree 24469 establish that the resources of the individual capitalization fund (FCI), except for high-liquidity funds, must be invested in securities and that at least 95% of the value of the fund must be maintained in custody entities.

That Supreme Decree 25958 in its Article 19 modifies Article 194 of Supreme Decree 24469, which regulates Law 1732, and establishes that the Board of Directors of the BCB must set the maximum limit for investments of the Individual Capitalization Fund abroad by the AFPs.

That the Economic Policy Advisory in its Technical Report APEC-INEP 001/2007 recommends setting the percentage of twelve percent (12%) as the maximum limit for foreign investments for Pension Fund Administrators during the 2007 management period.

That the Report from the Legal Affairs Management SANO 019/2007 states that the Board of the Bank, in the absence of legal impediments, has the authority to define the maximum limit for investments of the Individual Capitalization Fund abroad by the Pension Fund Administrators, in accordance with Article 41 of Law 1732.

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

Article 1.- Set the maximum investment limit of the Individual Capitalization Fund (FCI) abroad for Pension Fund Administrators at twelve percent (12%) of their investment resources during 2007.

Article 2.- This Resolution shall enter into effect 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 set 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

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Raúl Garrón Claure

______________________________ __________________________ Enrique Ackermann Arguedas Hugo Dorado Aranibar

__________________ __________________ _____________________ Jorge Casso Echart Hugo Argote Argote Gustavo Blacutt Alcalá