Resolution SBS No. 2404-2019: Amending the Regulation on the Participation of Municipal Savings and Credit Banks in the Law Promoting Regional and Local Public Investment with Private Sector Participation

Lima, May 29, 2019

S.B.S. Resolution
No. 2404 - 2019

The Superintendent of Banks, Insurance, and Private Pension Fund Administrators:

CONSIDERING:

That, through Law No. 30608, the modification of Article 1 of Law No. 29230, the Law that promotes regional and local public investment with private sector participation, was approved;

That, said Law No. 30608 aims to promote macro-regional microeconomic articulation through the possibility of intervention of municipal savings and credit banks in the financing and/or execution of public investment projects in agreement with regional and local governments;

That, the Regulation on the Participation of Municipal Savings and Credit Banks in the Law that promotes regional and local public investment with private sector participation, approved by SBS Resolution No. 1706-2018 of 05/02/2018, hereinafter the Regulation, establishes the conditions and prior requirements and prudential criteria for the participation of municipal savings and credit banks in the aforementioned Law, related to capitalization of profits, risk management, and corporate governance;

That, it is necessary to extend the deadline for signing the investment agreement related to the 2017 exercise referred to in the Regulation, considering that it is the first time that municipal savings and credit banks use the tax-for-works mechanism, and such use requires the understanding and execution of a set of stages and processes and the participation of various counterparties;

With the approval of the Adjunct Superintendencies of Banking and Microfinance and of Legal Advice; and,

In exercise of the powers conferred by items 7 and 9 of Article 349 of the General Law of the Financial System and the Insurance System and Organic Law of the Superintendence of Banking and Insurance approved by Law No. 26702 and its amendments; and, in accordance with the exception conditions set forth in item 3.2 of Article 14 of Supreme Decree No. 001-2009-JUS;

RESOLVES:

Article First.- Modify the Regulation on the Participation of Municipal Savings and Credit Banks in the Law that promotes regional and local public investment with private sector participation, in the terms indicated below:

1. Replace the first paragraph of the Sole Transitional Provision, with the following:

“Sole.- For the only time, the CMAC that as of 12/31/2017 meets the requirements set forth in Article 5 of this Regulation, may present the evaluation report of the Internal Audit Unit set forth in Article 7, at the latest until 07/31/2018. Within a period not exceeding thirty (30) calendar days from the receipt of the aforementioned report, this Superintendence will evaluate said report and may rule on it. If this Superintendence does not rule within the aforementioned period, it will be understood that the results of the evaluation of the CMAC's Internal Audit Unit are compliant and the CMAC may continue with the participation process in the tax-for-works mechanism. The investment agreement may be signed no later than 09/30/2019. (…)”

Article Second.- This Resolution enters into force from the day following its publication in the Official Gazette El Peruano, applying immediately even to procedures in progress.

Register, communicate, and publish.

SOCORRO HEYSEN ZEGARRA
Superintendent of Banks, Insurance, and
Private Pension Fund Administrators