Key Benefits:
NO 272
MAMERTO URRIOLAGOITIA H.
CONSTITUTIONAL PRESIDENT OF THE REPAsBLICA
For how much: the Honorable National Congress has sanctioned the following Law:
THE NATIONAL CONGRESS
DECCRETA:
ArtA-arse 1A ° †"AutorA-zase to the Executive Branch to convert external obligations into American dollars, and for which bonds were issued, in new obligations subject to the conditions set forth in this law or other favorable ones.
The conversion is refers to the following pending attention:
Issued Overtime Inter
R. Bolivia (Chandler) 1917 1940 6%
R. of Bolivia (Americano) 1922 1947 8%
R. of Bolivia (Dillon, Read) 1927 1958 7%
R. From Bolivia (Lillon, Read) 1928 1969 7%
ArtA-Aculo 2A ° †" The bondholders of the detailed obligations will be eligible for this conversion until 31 December 1953, and the Government of Bolivia may extend this deadline.
Article 3A ° †" The obligations in favour of the holders of bonds with the conversion, shall have the same value of capital as the converted obligations, shall be dated on 1 January 1951, and shall be subject to the following conditions:
During the years 1951 to 1956, inclusive, The following inter-als will be paid to bonds with the following: 1% in 1951 and 1952; 1 ./2% in 1953 and 1954; 2% in 1955 and 1956;
During the time indicated, or from 1951 to 1956, the Government of Bolivia will, even, allocate monthly to the payment of interest and amortisation of the obligations, the minimum amount of a MILLION FIVE HUNDRED THOUSAND DOLLARS. The Government of Bolivia once the interest payment of the bonds accepted for the conversion is taken care of, it will be free to apply the balance of the sum indicated or other additional sums, to purchases under the pair or draws to the pair of the bonds Bonds in dollars and purchases under the par of the bonds not covered by the conversion;
As of the 1st of January 1957, until the extinguishing of the obligations under the conversion, the service of interest and amortisation that are The following:
For the annual interest and amortisation service, it will be allocated a fixed amount, equivalent to 4% of the outstanding balance by capital of obligations under the convergence at 31 December 1956. If, at a later date, and by extension of the time limit referred to in Article 2A of this law, there would be bonds that would qualify for the conversion plan, they would be added to the total balance to calculate the service of 4%.
The year-on-year, as of 1A ° January 1957, will be 3%.
To be allocated for annual amortisation, as of 1A ° January 1957, the difference between the annual fixed amount set out in point (1) and the one corresponding to the interest payable under point (a). The redemption fund will be applied to the purchase of bonds under the pair or to the pair in case the listing is equal to or greater than the nominal value of the titles. The State may use its right to allocate additional sums at any time to make write-downs or extraordinary bailouts of bonds.
The default in the service stipulated in this law of the obligations under the conversion, (a) to establish all the rights of the bondholders covered by this plan as provided for in the original contracts.
ArtA-arse 4A ° †"The Executive Branch is authorized to issue new bonds for late and unpaid interest at December 31, 1950, in the ratio of 10% on the nominal value of each bond received for the conversion, which shall have equal terms, conditions and time limits for the capital bonds to be converted.
Article 5 A-Article 5a "The delivery of the new recognised interest bonds implies on the part of the holder that receives the waiver from the any other sum for interest outstanding and accrued at 31 December 1950.
ArtA-ass 6A ° †"The Executive Branch is also authorized to issue new bonds or to resent the old securities by capital that are used for the present conversion plan. The new bonds issued or the reseals shall have a minimum maturity of 36 years from the date of the new date of the January 1951.
ArtA-ass 7A ° †"For the exclusive attention of the obligations stipulated and recognized by this law, the following resources are created:
Additional tax of 5% on the surcharge of 15% on the profits of the trade and industry, when such profits exceed 10% of the nominal capital and reserves of trade or industry exercised.
Additional tax of Bs. 0.10 on the production of mineral water bottles, soft drinks, Soda or drinks of 0.25 litres or fraccions in the entire Republic;
Additional taxes on the import of spirits and wines, under the following rate:
First class bottled liquor "
such as Wisky, Cognac and other Bs. 12.a €" litre
Second class bottled liquor ",
as CaA ± a Paraguaya and other Bs. 6.†"litre.
Spirits, such as Fernet, Cre-
plus, Vermouth, AnA-s and other Bs. 6.â€" litre.
sparkling wines "first class" co-
mo Champagne and other Bs. 15.†" litre.
Non-foaming wines such as Santa Rita,
Tocornal and other Bs. 5.â € " litre.
Additional production tax
in the entire Republic of alcohols, a-
guardiors and spirits, in the following
shape:
Cereal Alcohols Bs. 2.a € "litre.
CaA alcohols ± a Bs. 1.â €" litre.
Fruit and molasses Aguartines has-
ta 53 degrees Bs. 0.50 litre
From fruit and molasses des-
53 up to 60 degrees Bs. 1.a € "litre.
Spirits spirits Bs. 4.a €" litre.
sparkling wines Bs. 5.a € " litre.
Non-foaming wines Bs. 0.20 litre.
Else 50% to 60% on the sale price, the tax on cigarettes, cigarettes and tobacco products referred to in Article 1A of the Law of 5 December December 1933;
Recorder or surcharge on the proportion of 30% on all the securities established by the Law on the Sellading Paper and Timbers of April 22, 1941, to which end, the Treasurer-General of the Nacina will have the resello of all the papers assessed affected to this surcharge, which will enter into force from the 1A °. January 1951 by fixing price indices according to the monetary unit and its decimal fractions.
Article 8A ° †"The amount which, by concept of the resources established in the previous article, is collected monthly, paid each month by the respective collecting offices, in a special account opened at the Central Bank, under the heading "Account for the External Debt Service".
ArtA-arse 9A ° †"The service of the tax obligations in this law, and in the form and conditions established therein, shall be carried out by the Central Bank of Bolivia, by means of agents or tax agents in New York, (a) to be recognized American banking institutions, for which the conventions it holds will be used as usual for this management, so that the execution of the conversion plan is in all respects normal and current. To this object the "Account for the External Debt Service" will be handled directly by the Central Bank of Bolivia and reviewed and approved semi-annually by the Comptroller-General of the Republic.
Taxes and surcharges established by this law shall be charged from the 1st of January 1951.
ArtA-ass 10A ° .†"If the resources created pursuant to Article 7A of this law were not sufficient to cover the minimum sum required for the service of the obligations under the conversion, the Budget of the In its chapter, "Obligations of the State", item "Unforeseen", will put the Central Bank at the disposal of the additional amounts necessary to complete the service of these obligations. If, in any case, the amounts raised are higher than the actual amount required for the service, the excess, if not used in extraordinary bailouts, shall be reimbursed to the Fiscus in the following year, which shall be considered as income ordinary.
ArtA-ass 11A ° †"From the year 1951 and until the year 1956, inclusive, the annual foreign exchange budget will be shown a special A-tem for the sum of ONE MILLION FIVE HUNDRED THOUSAND DOLLARS for the conversion to the official change of the amounts in Bolivians deposited in the "Account for the External Debt Service". From the year 1957, the sum included in the foreign exchange budget shall be the sum required according to paragraph (c) of Article 3A (c) of this law.
ArtA-ass 12A ° .†"In order to make the provision of North American currency effective The article refers to the previous article and the payment of other foreign obligations not contemplated in the present disposiciation is elevated to categorical-to the Law the Supreme Decree NA ° 1008 of January 7, 1948.
ArtA-culo 13A ° †"The provisions contrary to this law are repealed.
RemA-be to the Executive Branch for constitutional purposes.
Session of the H. National Congress.
La Paz, 5 October 1950.
(Fdo.) John Ml. Balcazar.†"(Fdo.) L. Lanza Solares.â€" (Fdo.) C. LAñóspez Arce, Senator Secretario.†"(Fdo.) P. Saucedo Barbery, Senator Secretario.â€" (Fdo.) Julio Crespo, Deputy Secretary. †"(Fdo.) Alberto Brito M., Diputado Secretario.â€"
POR TANTO: The law has been enacted so that it has and will comply with the Law of the Republic.
Government Palace, in the city of La Paz, at the sixteen days of October of a thousand nine hundred and fifty years.
(Fdo.) MAERTO URRIOLAGOITIA.€ " (Fdo.) Julio Alvarado.
