Creates The Public Bank Within The Framework Of The Provisions Of Article 330 Of The Political Constitution Of The State

Original Language Title: CREA LA ENTIDAD BANCARIA PÚBLICA EN EL MARCO DE LO PREVISTO EN EL ARTÍCULO 330 DE LA CONSTITUCIÓN POLÍTICA DEL ESTADO

Read the untranslated law here: http://www.gacetaoficialdebolivia.gob.bo/index.php/normas/verGratis_gob2/141595

Law No. 331 law of 27 of December of 2012 EVO MORALES AYMA President constitutional of the PLURINATIONAL State of BOLIVIA, by how much, the plurinational Legislative Assembly, has sanctioned the following law: the Assembly Legislative PLURINATIONAL, D E C R E T A: chapter I article 1 object and constitutional framework. (CONSTITUTIONAL FRAMEWORK).
I. Article 306 of the Constitution of the State, defines inter alia that the Bolivian economic model is plural, establishing four forms of economic organization: community, State, private and social cooperative.
II. Article 309 of the Constitution, stipulates that the State economic organization form includes companies and other State-owned economic entities, that will meet specific objectives of social and public interest, including the direct production of goods and services.
III. paragraph 4 of the article 316 of the political Constitution of the State, referred to the role of the State in the economy, determines the direct participation of the State in the economy through the incentive and the production of goods and economic and social services to promote social and economic equity, development, avoiding the economy oligopolistic control.
IV. paragraph V of article 330 of the constitutional text, determines that the financial operations of the public administration, at different levels of Government, will be carried out by a public banking institution, which shall be provided by law.

Article 2. (OBJECT). This law aims to the creation of the public bank within the framework of the provisions of the article 330 of the political Constitution of the State and the other constitutional precepts laid down in the preceding article of this law.

Chapter II public bank as State economic organization form article 3. (CREATION). Create the public bank, as an entity of public banking financial intermediation in the person of Banco Union SA and as a form of economic organization in which the State, through the General Treasury of the nation? TGN, will keep one stake greater than ninety-seven percent (97%) of social capital that will aim at conduct, within the framework of this law, operations, and financial services of the public administration, in its different levels of Government, as well as operations and financial services with the general public in the framework of the provisions of this law , and the law that regulates the activity of financial intermediation institutions.
Article 4. (PURPOSE AND SCOPE).
Purpose shall i. the entity banking public be to perform the operations and financial services of all public administration at different levels of Government, managing deposits from entities of non-financial public sector by the Central Bank of Bolivia account? BCB, to which all must keep their funds in fiscal accounts in the BCB. Also, the entity Bank public will have the purpose of perform them operations and services financial to the public general, favoring to the development of it activity economic national, through the support to the sector productive constituted mainly by them micro and small companies, crafts, services, organizations community and cooperative of production, without exclusion of other type of companies or units economic in the frame of them political public established by the State multinational.
II. realization of operations and financial services to the public administration, at different levels of Government, reaches to all entities of the public sector without exception, which are listed below with character and not limited to: legislature, Executive, judiciary, plurinational Electoral body, plurinational Constitutional Court, Attorney General of the State, General Comptroller of the State Defender of the people, Public Ministry, armed forces, Bolivian police, autonomous territorial entities, public universities, institutions, bodies and public companies and any other legal person where the State has most of the heritage.
III. operations and financial services provided to entities of the public administration, will be provided on the basis of their respective legal and financial capabilities.
IV. for operations and financial services means the whole of operations active, passive and contingent, as financial services authorized to perform to the public bank in the present law and legal provisions and regulatory governing the activity of the public bank.
Article 5. (APPLICABLE LAW). The public bank shall be governed as provided in this law, which will be preferential application with respect to any other legal provision; the law that regulates the activity and entities of intermediation financial, them standards that issue the Ministry that exerts it rectory of the system national of Treasury and credit public, them standards of the BCB referred to the system of payments and to their skills with the system financial and, in what not is contrary to the present law, governed them provisions established in the code of trade. They will not be of application the General or special provisions relating to the public sector.
Article 6. (FUNCTIONS).
I. for the compliance of the objective and others purposes established in the present law, it entity Bank public, besides them operations established in the law that regulates it activity and entities of intermediation financial, will meet them following functions related with the system national of Treasury and credit public, it management of Treasury of the BCB and with its role of contribute to the development of it activity economic national : Provide management services of current accounts tax borne by the BCB of all entities of the public administration at different levels of Government, according to regulations of the organ Executive from the central level of the State or the Ministry exerted the rectory of the national system of Treasury and public credit;

Provide payment of monthly salary for all entities and public enterprises, payment of income to retirees and beneficiaries of social programs, payment to suppliers and pay for other concepts according to related regulations of the executive organ of the central level of the State or the Ministry exerted the rectory of the national system of Treasury and public credit;

Providing services of collection of taxes and tariff charges are taxes, fees, patents and special contributions, within the framework of agreements or contracts concluded with the competent authorities;

Act as intermediary by has and order of the TGN in the placement of values and, prior provision of funds, in the redemption of the same;

Provide loans to institutions and companies in the public sector in the framework of the provisions of this law;

Provide services as may be required by the BCB, including receipt of deposits by reserve and custody and distribution of monetary material on behalf of the BCB, subject to agreements and tariffs that both parties establish;

Perform other operations or financial services authorized by the regulations, consistent with the object, purpose and scope of the public bank.
II. to promote the development of the national economy and in particular support to the productive sector, the public bank will develop the following functions: give credit to sectors of micro and small enterprises, crafts, services, community organizations, cooperatives of production, without exclusion of other types of businesses or economic units, mainly in the productive sectors, to promote job creation and support State policies of economic and social development;

Manage and act as trustee of special funds that constitute the central level of the State, autonomous territorial entities, and international financing entities with specific purposes of promotion of the productive sector;

Coordinate with entities of the State and other institutions that are in charge of technical assistance programmes, to integrate this financial support, primarily in the productive sectors;

Establish agreements with microfinance institutions in order to serve its purpose;

Promoting and contributing to financial inclusion, continually seeking the extension of the operations and financial services to the entire population;

Perform other operations or financial services authorized by the regulations, consistent with the object, purpose and scope of the public bank.
III. subject to regulations issued by the Executive branch of the central level of the State or the Ministry exerted the rectory of the national system of Treasury and public credit, public bank will implement the system features unique to the autonomous territorial entities and public universities, in a phased manner.
IV. for carrying out operations and financial services related to the national system of Treasury and public credit, public bank may establish correspondent relationships with financial institutions, under the field of supervision of the Authority's Supervision of the financial system.
V. The granting of loans to institutions and companies in the public sector, in all cases, shall be carried out within the framework of

It planned in the numeral 10 of the article 158 and the article 322 of the Constitution political of the State, the law that regulates the activity and entities of intermediation financial, them provisions of borrowing public and of the system national of Treasury and credit public and them standards of regulation prudential of the authority of Supervision of the system financial.

VI. the granting of credit to entities and public enterprises must be performed with warranties which may consist of coverage granted guarantees, insurance companies, the guarantee of the TGN funds when it is authorized by law or other guarantee mechanisms laid down in the legal provisions in force.
VII. public bank may grant credit to employees, workers or civil servants of companies and public entities, including the law that regulates the activity and financial intermediation institutions and standards of prudential of the Authority's Supervision of the financial system regulation, unless such credit transactions can be considered related-party transactions.
VIII. Requests for credit which may be carried out at the maximum executive authority? MAE and the Vice-Ministers of the Ministry exerted the rectory of the national system of Treasury and public credit, in addition to complying with the requirements and regular procedures for the granting of credits, will require the express authorization of the MAE of the Ministry of the Presidency, on the basis of a certification stating the terms and conditions of the credit transaction to be issued by the public bank.
Article 7. (INVESTMENTS IN OTHER COMPANIES). The public bank may hold shares or equity participation in entities that are within the scope of supervision and regulation of the Authority's Supervision of the financial system or the authority of control and Control of pension and insurance, as well as carry out feasibility studies for establishing new societies whose activities are unrelated to its purpose and are in the aforementioned fields of supervision and regulation in the country. New societies may become joint-stock companies. The statute established the levels of approval required for these operations.
Article 8. (ADDRESS AND DURATION).
I. the public bank will have domicile in the city of La Paz and can open or close, inside or outside the national territory, branches and agencies, noting the legal and regulatory provisions governing the activity and financial intermediation institutions.
II. the duration of the public bank will be indefinite.
Article 9. (CAPITAL).
I. the capital of public bank shall be represented by shares and shall not be less than the minimum amount set for banks in the law that regulates the activity and financial intermediation institutions. The Constitution of capital of public bank will accommodate the participation of natural or legal persons in one proportion of less than three percent (3%) of the total amount.
II. the State shall maintain the shareholding of the Bank public via the TGN and can concentrate ownership of one hundred percent (100%) of the shares with at least two other public institutions or State-owned enterprises from the central level of the State. The TGN shall at all times maintain one shareholding increased to ninety-seven percent (97%).
III. actions belonging to the State through public institutions or State-owned enterprises from the central level of the State, are not transferable to the private sector or to entities or public enterprises of the sub-national level. Shall be transferable only between entities public or businesses State of the level central of the State.
IV. public institutions or State-owned enterprises of the central State level, can purchase holders private or public actions of the public bank according to its budgetary availabilities in the General State budget.
Article 10. (INCREASE AND DECREASE OF CAPITAL).
I. the Executive of the central level of the State organ, by Supreme Decree may have to make new capital contributions for the purpose of expansion of its operations, coverage of the needs of asset requirement arising from its growth and others related to the fulfilment of the purpose of the public bank.
II. when the new capital contributions had intended the replenishment of capital affected by losses, the same shall be with permission of the plurinational Legislative Assembly, through State law.
III. private shareholders can subscribe new shares in proportion to the number who have. In any case the social participation of private shareholders may be higher than the percentage who have.
IV. the participation shares of the sector public not may be object of decrease by reduction voluntary of the capital State contribution.


Article 11. (PREEMPTIVE). When the capital structure also integrate the participation of the private sector, the State has preferential right in the purchase of ordinary shares owned by private owners.
Article 12. (ADMINISTRATION). The administration of the public bank will be governed according to the statutes of the public bank, framed in the provisions of the law that regulates the activity and financial intermediation institutions and the commercial code for the Corporation, in everything that is not contrary to this Act.
Article 13. (DISTRIBUTION OF PROFITS). The distribution of profits effective and liquid, after constituted reserves legal and voluntary deemed suitable, the public Bank and provided that such distribution does not affect the fulfillment of legal relations established in the law that regulates the activity and financial intermediation institutions and other provisions of the Authority's Supervision of the financial system, will be approved by the general meeting of shareholders.
Article 14. (REPRESENTATION IN THE JOINTS OF SHAREHOLDERS).

I. representation at the General meeting of shareholders with full power, voice and vote, the actions on behalf of the TGN, shall be exercised by the Minister of economy and finance or by express delegation, by the Deputy Minister of the Treasury and public credit.
II. when the shareholder structure provides for the participation of other (s) institution (s) or company (s) State (s), the corresponding representation shall be exercised by the (s) maximum (s) Authority (s) Executive (s), and where appropriate, through delegation to an authority of the same entity whose titular authority designate expressly.
Article 15. (RELATIONSHIP WITH THE EXECUTIVE BODY). The public bank relationship with the Executive branch of the central State level, will take place only by intermediate of the Ministry of economy and public finances, except with regard to operational matters or mere formality, in which case the communication with public dealings will be direct.
Article 16. (REGIME OF PERSONNEL). Labour relations between the public Bank and its employees are governed by the General Labour Act, its regulations and complementary standards.
Article 17. (NEEDS OF LIQUIDITY). The public bank to meet their liquidity needs may request funding from the BCB, entity that may be granted in accordance with the rules and regulations governing the credit operations of liquidity for banks and other private lenders.
Article 18. (MONITORING AND CONTROL). The supervision and control of the operations and financial services rendered by the public bank, will be made, exclusively, by the authority of Supervision of the financial system, as governing body of control of all public resources acquisition system and financial intermediation in the country which exercises and oversees external, determining control, if demanding , compliance with legal provisions, standards and regulations by all entities that perform in the national territory of intermediation in the supply and demand of financial resources.
Article 19. (SURVEILLANCE). The Ministry exercised by the Rector of the national system of Treasury and public credit, within the scope of their functions and powers related to the referral system, shall comply with the function of surveillance of the public bank regarding financial operations carrying out the entities and public enterprises in the framework of the national system of Treasury and public credit, without prejudice to the powers of the Authority's Supervision of the financial system. The watch function will consist of the following activities: ensure that the financial operations of the public sector which process the public bank within the framework of the national system of Treasury and public credit, are carried out with criteria of safety and efficiency;

Coordinate and monitor the proper access, use and delivery of services and products; ways and means of payment; procedures, and other aspects related to the effectiveness and efficiency of the financial operations carried out with public inherent to the national system of Treasury and public credit;


Verify the consistency of the information reported by the public bank on the operations and financial services to entities of the public sector by reconciliations and other tests of consistency and, when it deems appropriate, propose adjustments operating and other measures deemed suitable to improve the processes of interaction of the public bank with the national system of Treasury and public credit. For this purpose, the Ministry exercised by the Rector of the national system of Treasury and public credit, will have access to all information related to such financial operations; requiring

Instruct the public bank processing debits, transfers and detentions of resources of the fiscal accounts of the entities of the public administration at all levels of Government, for the purpose of ensuring compliance with the legal and regulatory provisions, relating to the national system of Treasury and public credit;

Sanctioned with pecuniary fines to the public bank for breach of public administration-related functions as described in article 6 of this law, in accordance with the specific regulations issued by the body that exercises the rectory of the national system of Treasury and public credit;

Perform other activities aimed to promote or preserve the supply of financial services to the public sector on an ongoing basis and under appropriate standards of quality.
Article 20. (MEMORY ANNUAL). The public bank shall draw up the annual report on the activities and submit a copy of the same for remission and knowledge to the plurinational Legislative Assembly, Comptroller General of the State, authority of Supervision of the financial system and other competent bodies; document that should minimally contain the management report annual, specifying among other primordial aspects, estate developments, report of the trustee, on financial statements external audit report and any other relevant documents relating to the management of the public bank.
Article 21. (BONDING).
I for the purposes of the application of the limitations and prohibitions in the law that regulates the activity and financial intermediation institutions, deemed that none of the entities and public sector enterprises, have no stake in the public banking institution, has links with the same, or make up including an economic group.
II. the operations of credit granted to servers public and employees or workers of State-owned enterprises or where the State has a stake, will not be considered associated loans.
Article 22. (RATE FOR PUBLIC SECTOR FINANCIAL OPERATIONS). Operations and financial services that give the public bank in favour of the public administration, at all levels of Government, will be paid according to a rate that shall have the non-objection of the Ministry that exerts the rectory of the national system of Treasury and public credit for their application, and must the public bank for this purpose submit the tariff backed in an analysis of cost structure and other technical and financial livelihoods which correspond or are required. The construction of the rates allowed a margin of reasonable utility that allows maintaining systems and existing technologies, expand points of attention and run new investment that contribute continuously to improve quality standards with which financial services should be provided. The tariff may be revised periodically.
Article 23. (TAXATION). The public bank is subject to the fulfillment of tax obligations and all the provisions governing the matter.

Chapter III effects of the creation of the public bank article 24. (INSTITUTION OF THE ENTITY BANKING PUBLIC).
I. the creation of the public bank in the person of Banco Union SA by express mandate of this law does not require compliance with requirement or formality by virtue that the State, through the TGN, is a shareholder with ninety -seven point forty-two per cent (97.42%) of that entity's public banking financial intermediation.
II. the institution of Banco Union SA as a public bank, does not dissolve the society, does not alter the rights and obligations existing, conditions the continuation of its operation to comply with any requirement, or requires re-enrollment or fitness records public or private, keeping remaining and unchanging that found in force, except for the update of the statutes in the aspects that modifies this law.
III. for all purposes the Banco Union SA initial balance as public bank will be the Balance sheet of the Bank prepared at the end of the month in which this Act is published.
ADDITIONAL PROVISIONS FIRST. Is embodied in article 1 of the law N ° 1488, 14 April 1993, of banks and financial institutions (ordered text), the following definition:? Banking financial intermediation public (public bank) entity: Bank with shareholding of staff to ninety-seven percent (97%), with competition exclusive to manage fiscal accounts of the public administration at different levels of Government on behalf of the Central Bank of Bolivia, with the mandate to carry out operations and financial services, laid down in the basic law the modernization of the financial management of the State and to support the development of national economic activity-oriented.?
THE SECOND. Amending article 24 of the law N ° 1670 of 31 October 1995, of the Central Bank of Bolivia, with the following text:? Article 24. All the non-financial Public Sector entities should keep their funds in fiscal accounts in the Central Bank of Bolivia. Will the public bank with proprietary character be the financial institution responsible for the administration of the fiscal accounts on behalf of the Central Bank of Bolivia.?
THIRD. The bylaws of Banco Union SA as a public banking institution must be suitable within the period of one hundred and eighty (180) days Computable from the publication of this law.
-FOURTH. Banco Union SA as a public bank, in coordination with the TGN, will draw up a plan of investment and operation which shall be gradually the adequacy and/or expansion of its physical infrastructure, organizational, technological, and other media that require to fully cover the provision of financial services to all public administration at different levels of Government.
QUINTA. The Ministry of economy and finance, is authorised to undertake and carry out on behalf of the TGN, additional contributions of capital to Banco Union SA, up to the amount of Bs.350.000.000.-(three hundred and fifty million 00/100 BOLIVIANOS) according to availability of the TGN, for purposes of sustaining the growth of the Bank.
SOLE FINAL PROVISION.
I will empower the executive organ of the central level of the State and the Ministry exercised by the Rector of the national system of Treasury and public credit, to regulate by decree or Ministerial resolution, as appropriate, the provision of financial services to public administration, processes, procedures and all other aspect related to the national system of Treasury and public credit and operations that they must apply the BCB, the public Bank and the entities of the public sector at all levels of Government.

II. in the meantime, issued the regulations referred to in the preceding paragraph, shall apply provisions and contractual provisions of delegated administration, operational guidelines and other related provisions.
SOLE REPEAL AND ABROGATION PROVISION. Repealing subsection g) of section 29 of the Act No. 1670 of 31 October 1995, of the Central Bank of Bolivia, are repealed and override all other provisions contrary to this law.
Refer to the Executive Body for constitutional purposes.
Two thousand twelve is given in the room of sessions the Assembly Legislative plurinational, eighteen days after the month of December of the year.
FDO. Lilly Gabriela MONTAÑO Viana, Rebeca Elvira Delgado Burgoa, Mary Medina Zabaleta, Maria Elena Mendez Leon Wilson Changaray T., Angel David Cortez Villegas.
I therefore enacted it is and meets as a law of the plurinational State of Bolivia.
City of Cochabamba, at twenty-seven days of the month of December of the year two thousand twelve.
FDO. EVO MORALES AYMA, Juan Ramón Quintana Taborga, Elba Viviana Caro Hinojosa, Luis Alberto Arce Catacora, Daniel Santalla Torrez, Amanda Davila Torres.