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LAW N ° 1670 LAW OF OCTOBER 31, 1995
GONZALO SANCHEZ DE LOZADA CONSTITUTIONAL PRESIDENT OF THE REPUBLIC
As soon as the Honorable National Congress has sanctioned the following Law: THE HONORABLE CONGRESS NATIONAL, D E C R E T A: LAW OF THE CENTRAL BANK OF BOLIVIA
TITLE I SINGLE CHAPTER
NATURE, OBJECT AND GENERAL FUNCTION Article 1. The Central Bank of Bolivia (The BCB) is an institution of the State, of public law, of an autarquic nature, of indefinite duration, with legal personality and own patrimony and with legal domicile in the city of La Paz. It is the only monetary and exchange authority in the country and therefore the governing body of the system of national financial intermediation, with administrative, technical and financial competence and specialized regulatory powers of general application, in the form and with the scope set out in this Law. Article 2. The object of the BCB is to ensure the stability of the domestic purchasing power of the national currency. Article 3. The BCB in the framework of this Law, will formulate the policies of general application in monetary, exchange and financial intermediation, which comprise the credit and bank, for the fulfillment of its object. Article 4. The BCB shall take into account the economic policy of the Government, within the framework of this Law, at the time of formulating its policies. The BCB's relationship with the government will be made through the minister who exercises the finance portfolio. Article 5. The BCB will recommend to the Government the adoption of the measures it deems appropriate to enable the implementation of its object. TITLE II
FUNCTIONS SPECIFIC TO THE CENTRAL BANK OF BOLIVIA CHAPTER I
FUNCTIONS AS MONETARY AUTHORITY Article 6. The BCB will execute the monetary policy and regulate the amount of money and the volume of the credit in accordance with its monetary program. For this purpose, it may issue, place and acquire securities and perform other open market operations. Article 7. The BCB will be able to establish legal encajes of mandatory compliance by banks and financial intermediation entities. Its composition, amount, form of calculation, characteristics and remuneration, shall be established by the Board of the Bank, by an absolute majority of votes. The supervision and supervision of the legal framework will be the responsibility of the Superintendency of Banks and Financial Entities. Article 8. The lacy and deposits made up of the BCB by banks and financial institutions shall not be subject to any form of embargo or judicial retention by third parties. Article 9. The BCB will be able to discount and discount bills of exchange, promissory notes or other securities, with banks and financial intermediation entities, only for the purpose of monetary regulation. Securities securities shall be registered with the National Securities and Exchange Commission, where appropriate. Article 10. The BCB will exercise exclusively and inselectable the function of issuing the monetary unit of Bolivia, which is the? Bolivian?, in the form of metallic notes and coins. Article 11. The banknotes and coins issued by the BCB are means of payment of legal tender throughout the territory of the Republic, with unlimited release. They will have the names, dimensions, designs and colors available to their Directory, which will have to make public their characteristics. The tickets must bear the signatures of the President and the General Manager of the BCB and the serial number in both halves thereof.
Article 12. The BCB will contract the printing of banknotes and coin minting, including those issued for commemorative or numismatic purposes, subject to the general rules for the procurement of goods and services for the State. Article 13. The BCB, banks and any financial intermediary institution, are obliged to exchange damaged or mutilated banknotes, provided that they clearly retain their two signatures and a serial number. CHAPTER II
FUNCTIONS IN RELATION TO INTERNATIONAL RESERVES Article 14. The BCB shall ensure the strengthening of the International Reserves in such a way as to enable the normal operation of international payments from Bolivia. Article 15. BCB's International Reserves are constituted by one or more of the following assets, in accordance with international standards:
Physical Gold.
Currency deposited in BCB itself or in institutions financial outside the country to the order of the Central Bank of Bolivia, which shall be of first order in accordance with internationally accepted criteria.
Any internationally recognized reserve assets.
Exchange Letters and In the case of the BCB, denominated in foreign currencies of general acceptance in international transactions and payable abroad.
Public titles and other negotiable securities issued by foreign governments, international entities and bodies or financial institutions of the first foreign order, duly qualified as eligible by the BCB Directory.
Own funds to international financial organizations when such contributions are internationally repudiated as reserve assets.
Article 16. The BCB will manage and manage its International Reserves, and will be able to invest them. and deposit them in custody, as well as dispose and pignorize the same, in the manner that it considers most appropriate for the fulfillment of its object and its functions and for its adequate protection and safety. It may also purchase exchange rate instruments in order to reduce risks. In the case of the gold pignoration, it must have a legislative approval. Article 17. The International Reserves are inembargable and will not be subject to precautionary, administrative or judicial measures. They shall also not be subject to any state tax or contribution, except for the Superintendence of Banks and Financial Entities in accordance with this Law. Article 18. The BCB will be able to contract credits to strengthen the level of international monetary reserves, without compromising the resources of the National Treasury. CHAPTER III FOREIGN EXCHANGE FUNCTIONS Article 19. The BCB will establish the exchange rate regime and implement the exchange rate policy, normalizing the conversion of the Bolivian currency in relation to the currencies of other countries and the procedures for determine the exchange rates of the national currency. The latter must be published daily. Article 20. The BCB has the right to regulate financial transactions abroad, carried out by public and private persons or entities. Article 21. The BCB will carry the registration of public and private foreign debt. CHAPTER IV FUNCTIONS IN RELATION TO THE PUBLIC SECTOR
Article 22. The BCB will not be able to grant credit to the Public Sector or to contract contingent liabilities in favour of it. Exceptionally, it will be able to do so in favor of the National Treasury, with a favorable vote of two thirds of the members present at the meeting of its Board, in the following cases:
To address undelayed needs arising from calamities public, internal or international shock, declared by Supreme Decree.
To address transitional liquidity needs, within the limits of the monetary program.
Article 23. The operations provided for in the previous Article shall be documented in all cases by securities securities of public debt issued by the National Treasury, which, in the case provided for in point (b), shall be the maximum one year. Article 24. All Public Sector entities must deposit their funds into BCB tax accounts. The BCB may delegate, through competitive mechanisms, the administration of these deposits to other banks and financial institutions, except for deposits from the autonomous institutions that carry out the respective authorization before the Ministry of Finance. Article 25. The BCB is entitled to debit or instruct the debit of the National Treasury's accounts to cancel the latter's due obligations. Article 26. The BCB's share of the Superintendence of Banks and Financial Entities will be established annually by Supreme Resolution. Article 27. The BCB may assume the representation of the State to international and multilateral monetary bodies. CHAPTER V
FUNCTIONS AS A GOVERNMENT FINANCIAL AGENT Article 28. Non-Financial Public Sector entities shall conduct their operations with the BCB through the National Treasury. Article 29. The BCB will perform the following functions as the Government's Financial Agent:
Provide services related to the hiring of external credits.
Act on all matters relating to the service of public debt for which the National Treasury must previously provide the BCB with the necessary funds, without prejudice to Article 75.
Receiving the State's securities in custody, in cases and under the conditions of the BCB, which can delegate this function to other banks and financial system entities.
Perform on behalf of the State contributions of capital to the international financial organizations concerned, prior to the deposit of such funds in the BCB.
Participate in the issuance, placement, and administration of public debt securities.
Perform trust and administration operations. Where the mandate of trust and administration provides for the granting of credit to financial institutions, such claims shall not be subject to the limit laid down in Article 48 of Law No 1488 of 4 April 1993.
Hire through competitive mechanisms, authorized entities in the financial system for the provision of financial services, at the request and on behalf of Public Sector institutions.
Perform other activities and operations that may be requested by the Government, as long as they are compatible with the object and nature of the BCB.
Participate in all renegotiation and conversion of external public debt.
Other than necessary to fulfill your Government Financial Agent function.
CHAPTER VI FUNCTIONS IN RELATION TO THE SYSTEM FINANCIAL
Article 30. The regulatory competence of the BCB, established in this Chapter, shall be subject to all entities in the financial intermediation and financial services system, the operation of which is authorized by the Superintendence of Banks and Financial Entities. Article 31. The BCB will dictate general application rules, using Resolutions in its Directory, regarding:
The collection and placement of resources and other financial services.
The opening of entities in the financial intermediation, its branches, agencies, subsidiaries and representations, taking into account the personal qualifications of managers, principal shareholders, directors and executives, in terms of their experience and suitability.
merger, transformation and settlement of financial intermediation entities.
of the amounts established by law, in force until the date of enactment of this law, the BCB may raise but not decrease, the amounts of minimum capital of general compliance and establish the other characteristics of the minimum capital necessary for the creation and operation of entities in the financial intermediation system. The new minimum capital necessary for the creation and operation of banks may not exceed the average net worth of all these institutions at the time of their determination.
The creation and operation of entity types of the financial intermediation system not provided for by Law.
The creation and operation of credit card companies or operators.
The transfer of resources for the creation of intermediary entities financial and the opening and functioning abroad of the country of branches, agencies, subsidiaries and representative offices. In all cases operations will be consolidated in the financial statements of the parent company.
The authorization of representative offices in Bolivia of entities incorporated abroad. In no case will these representations be able to carry out passive operations in the national territory.
The activities of the Second Floor Financial Entities whose sole object will be the intermediation of funds, exclusively towards entities private financial institutions that are legally established in the country.
In these entities: I) The limit of loans to a private financial institution, may not exceed 0.75 times the net worth of the lending institution; II) These institutions shall at all times maintain a net worth equivalent to that of less than 10% of the total of its assets and contingent weighted according to its risks; III) Loans made by these entities shall not be computed for the purposes referred to in Article 53º of the Law on Banks and Entities Financials.
Article 32. In relation to the placement of resources referred to in Article 31 (a) above, the following shall be fulfilled:
Financial institutions may not grant loans to borrowers or groups of borrowers linked to them.
A financial institution shall be considered to be linked to any borrower or borrower group that meets one or more of the following characteristics:
1. It holds a stake of more than 10% (10%) in the capital of the financial institution, directly or indirectly through natural or legal third parties. 2. In the financial institution, carry out directives, executive functions, internal control functions, or provide permanent advice to the higher authorities of your administration. It shall also be considered as a related borrower with any legal person for profit in which they participate. 3. Being a legal person incorporated in Bolivia or abroad, the financial institution does not have information and updated identification of its owners. Companies whose shares or their owners ' shares are traded on a regular basis are exempt. 4. Do not demonstrate a sufficient commercial or productive object to justify the financing received, or a net worth or net of sufficient resources to support it.
granted to natural and/or legal persons, who maintain among themselves any relationship of ownership, administration, guarantees, activity or destination of credit, when such relationship determines that such claims represent the same credit risk.
It will also be considered as a borrower group, linked or unrelated, that which is qualified as such by the Superintendence of Banks and Financial Entities, based on reasonable and sufficient evidence to show you? juris tantalum? the existence of binding relationships between natural and legal persons of a similar nature to those mentioned in the preceding paragraphs.
Article 33. The rules that BCB dictates in relation to the assets of the entities financial institutions shall be based on the following provisions:
Financial institutions shall maintain a net worth of at least 10% (10%) of the total of their assets and quotas, weighted on the basis of their risks
The following asset and contingent weighting coefficients are set:
From zero percent (0%) for cash on vault, BCB deposits and investments in securities issued by BCB and National Treasury, Central Bank credits from other countries, pre-paid contingent credits and the guaranteed loans with money deposits made up of the bank itself.
Of ten percent (10%) for the credits guaranteed by the National Treasury.
Of 20 percent (20%) for the credits guaranteed by National banks and foreign banks qualified as front lines by a prestigious company international as well as the credits that the financial institution grants to such banks and cash items in the process of recovery.
Of fifty percent (50%) for home, room, urban or rural mortgage-guaranteed loans, occupied or rented by the debtor, up to the amount of the mortgage value.
One hundred percent (100%) for all other active operations and services which, irrespective of their legal form of instrumentation, entail a risk or any kind of financial commitment to the financial institution.
These coefficients shall apply from 1 January 2018. of July 1998. In the meantime, the current regulation that complies with Article 47 of the Law of Banks and Financial Entities No. 1488 of 14 April 1993 will apply. (c) Operations generating assets not referred to in the preceding subparagraph shall have weighting coefficients determined by an absolute majority of the BCB Board. Article 34. The supervision and control of compliance with the rules that precede the Superintendence of Banks and Financial Entities and for its execution may carry out non-binding consultations with the BCB. Article 35. For the formulation of the rules contained in this Chapter, the BCB may also make non-binding consultations with the Superintendency of Banks and Financial Entities. Article 36. To meet liquidity needs, in duly justified and qualified cases by its Board, by an absolute majority of votes, the BCB may grant to banks and financial intermediation entities credit for 90 days, renewable. The limits of these credits and their guarantees will be established by the Board of the BCB, by an absolute majority. In order to consider the requests for these credits, the BCB will carry out non-binding consultations with the Superintendency of Banks and Financial Entities. Article 37. The BCB shall be the depositary of the liquid reserves to cover the legal lace and to attend to the payment system and other operations with the BCB of the financial intermediation entities subject to the authorisation and control of the Superintendence Banks and Financial Institutions. The BCB may delegate the custody of these deposits to the same or other financial institutions, according to a regulation. Article 38. In addition to the provisions of the foregoing Articles, the BCB may perform the following operations with banks and financial intermediation entities:
Receiving deposits in the national currency and in the term
Create and manage lines of credit in the framework of international payment compensation systems.
Accept custody of securities.
Buy, discount or guarantee assets; capitalize on accreances, dispose of (a) the resulting shares and the carrying out of spot or term credit transfers for the purpose of a stable and competitive intermediation system.
Subrogating all or part of the rights of the depositors of financial intermediation entities, acquiring these rights in cash or in time, in duly qualified cases by its Directory. The rights of the BCB thus acquired shall be of preference to any other creditor. The recovery of the committed resources must be performed according to a specific plan.
Other new operations that are compatible with the object of the BCB.
Article 39. The maturity of the banks and financial institutions with the BCB may be charged by debits to the Lace account and others maintained by the debtor institution on the BCB, without prejudice to other forms of recovery of such claims. obligations.
Article 40. The Superintendency of Banks and Financial Entities will have the obligation to supply the BCB with all the periodic information it receives from banks and other entities in the financial system. At the request of the President of the BCB, the Superintendent shall provide you with detailed information on the financial and financial situation of a particular financial institution, including the inspection reports which have been prepared. Banks and other financial intermediation entities are under the obligation to provide BCB directly with the information that it requires of a monetary nature and in its creditor status, as well as any other information directly requested by the BCB. the President of the BCB on the financial situation of an institution. This information weighs the reservation provided for in Article 80 of this Law. CHAPTER VII REPORTS AND ADVERTISING OF YOUR ACTS Article 41. The BCB as an institution of the Executive Branch, will raise periodically and when requested, reports to the President of the Republic about the evolution of the monetary, currency, credit and banking situation in the country. It will present annually to the President of the Republic the results of the implementation of its monetary, exchange, credit and banking policies, as well as the guidelines of the policies to be applied in the next administration. Article 42. Within the first hundred and twenty days of each year, the BCB will present the President of the Republic, the competent commissions of the Legislative Chambers and the Comptroller General of the Republic, the Annual Report of the institution corresponding to the previous management, which will include the results of the implementation of its policies and financial statements. At the same time, an extract from these states will be published in a national circulation journal. Article 43. The BCB shall periodically publish statistical and economic information on the economic and financial variables falling within the scope of its competence. TITLE III
BANK MANAGEMENT AND ADMINISTRATION
CHAPTER I
THE DIRECTORY ARTICLE 44. The maximum authority of the BCB is its Directory, which is responsible for defining its policies, general application regulations and internal rules; as well as for establishing administrative, operational and financial strategies of the BCB, approving their respective short and medium term programmes. For the monitoring and audit of its implementation, it shall have independent information, analysis and audit services. Article 45. The Board will be made up of the President of the BCB and five Directors. The President of the BCB shall be appointed by the President of the Republic of a third party approved by two-thirds of the votes of the members present in the Chamber of Deputies. He shall last for six years and shall not be re-elected until after a period equal to that during which he served. The Directors shall be appointed by the President of the Republic of Ternas approved by two-thirds of the votes of the members present in the Chamber of Deputies. Each Director shall last five years in his duties, and shall not be re-elected until after a period equal to that during which he has served. They shall be replaced periodically at the rate of one per year. Article 46. The President and the Directors must have Bolivian nationality of origin and have extensive experience in banking, economic, legal, administrative or financial matters. The President must have a university degree. Article 47. They may not be members of the Directory:
People who are relatives to each other within the third degree of consanguinity and second degree of affinity, according to the civil computation.
Public servants who perform paid, unless expressly disclaims.
Directors, syndicates, executives, administrators, shareholders, legal proxies, advisors and employees or dependents of companies or entities engaged in the activities subject to the BCB,
unless you resign from your position in the appropriate cases.
Those who are disabled to hold bank current account holders.
Those who have a damning sentence executed, with a custodial sentence by the commission of common crimes.
Those responsible, with a conviction executed, for bankruptcy, fault or dollose, of entities of the financial system and of societies in general.
executed against them by debt derivatives with banks and financial institutions, or civil or criminal liability in the exercise of public functions.
Those who have obligations due or in execution, with entities of the country's financial intermediation system.
Article 48. In case of resignation, disqualification or death of the President or any Director, shall be appointed to his replacement in the manner provided for in Article 45. The replacement shall perform his duties until the end of the replacement period. Article 49. The President and the Directors, due to the deadline of their term of office or in case of resignation, will continue in their duties until they are replaced, except for cases of legal incompatibility. In the event of a term of office, the delay in the replacement of the replacement shall be deducted from its term of office Article 50. The President of the Republic may dismiss the President and the Directors of the BCB before the conclusion of the corresponding period, only in the case of any of the following causes:
Physical impairment by a period of more than three months or judicially declared interdiction.
Any of the situations provided for in Article 47, in the event of failure to submit within 48 hours of the occurrence of the event
Unjustified absence from Directory meetings for more than one month.
Executive responsibility opinion in your against, issued by the Comptroller General and accepted by the President of the Republic.
Article 51. The remuneration of the President and the remuneration or allowances of the Directors shall be fixed by a Supreme Resolution every two years. Article 52. The President and the Directors shall be personally and severally responsible for the resolutions adopted in Directory, unless they have registered their disagreement in the minutes. Article 53. The quorum for the Board meetings will be half more than one of its members, including the President. The Board of Directors will have full probative value for any legal effect. Article 54. The BCB Directory has the following attributions:
Dictate the rules and adopt the general decisions that are necessary for the BCB to comply with the functions, powers and powers assigned to it by this Law.
Regular administration of payment systems between authorized financial entities.
Track the execution of monetary, exchange, credit, financial intermediation, management of international reserves, and other policies that correspond to the BCB under this Law.
Dictate the rules for open market operations performed by the BCB.
Define the organic structure of the BCB.
Approve the Annual Monetary Program and its modifications.
Approve the BCB Budget, for incorporation into the General Budget of the Nation.
Approve the BCB's annual financial statements and memory and reports provided for in Title II Chapter VII of this Law, elaborated by the administration of the BCB.
Setting and normalizing the administration of the legal lace to which banks and other financial institutions will be subject, providing the measures for their compliance.
Setting and modifying interest rates on the loans granted by the Bank. BCB, taking into account the market rates for similar operations and establishing their other terms and conditions.
Authorizing the creation and normalizing the operation of the Clearing Chambers.
Decrees bank holidays.
Authorize and monitor printing, issuance and destruction of banknotes and minting and removing coins, within the rules of this Law.
Formulate policies regarding the internal management of the BCB, monitoring its execution.
Approve, modify and interpret the BCB Statute and Regulations by two-thirds of the votes of the all of its members, without the need for any additional administrative act.
Authorize the requirements of acquisition, disposal and leasing of the movable and immovable property of the BCB, so that the General Management carry out the tendering, procurement and related supervision processes with the support of the Existing legal rules and internal BCB regulations.
The others referred to in this Law and those necessary for the performance of their duties.
Article 55. The decisions of the Board of Directors of the BCB may be challenged by any natural or legal person or the competent authority of the State, acting by means of a recall with a return effect, before the same Board, within a period of thirty (30) days of the date on which the BCB had made known the Resolution to the persons concerned or affected. The Board of Directors shall decide within twenty (20) days after the appeal of the recall. If the Directory is not pronounced within the deadline, the challenge shall be deemed to be denied to the deadline. The decision rejecting the appeal will exhaust the administrative procedure by issuing the administrative judicial procedure in accordance with Article 118 (I), paragraph 7 of the Constitution of the State, in which the action is shall address the President of the BCB as a legal representative.
When the challenge relates to a resolution that damages the rights of the appellant and the contention relates to the exercise of the BCB's jurisdiction in the cases provided for in Articles 7, 20, 31, 37 and 54 incs. (b) and (i) of this Law, the person concerned may bring an appeal against the refusal of the Board of Directors of the BCB, presenting it to the Board of the BCB, which shall raise the workers within 72 hours and ex officio before the Minister in the Portfolio of Finance. The Minister in the Treasury Department shall deliver a decision within five days of receipt of the decision. This resolution is definitive and depletes the administrative route, with the appellant being able to go to the judicial court in accordance with the law, within which the action will be directed against the Minister in the Treasury Department. The Minister's decision in the Finance Portfolio will be limited to confirming or revoking the contested decision, with effect only in respect of the appellant. Article 56. administrative acts of a general or particular nature, which do not relate to the internal labour regime, whether of the President or the General Manager of the BCB, who do not observe the formalities and legal requirements or who exceed their own powers and when they injure the rights of the appellant, they may be challenged by means of revocation, of a show of praise and hierarchical. The appeal for revocation shall be filed and settled by the authority under appeal in accordance with the provisions of the recall appeal in Article 55 above. Against the rejection of the BCB's Board of Directors, provided that it damages the rights of the appellant, the person concerned may bring an appeal before the Minister of the Treasury, in the same manner, subject to the deadlines and with the intended effects for the use of the raised in Article 55 above. The Minister's resolution depletes the administrative route. CHAPTER II
THE PRESIDENT OF THE BANK Article 57. The President is the first executive authority of the Institution. Therefore, it is responsible for directing and supervising the work leading to the formulation of policies and specialized norms of general application and definition of administrative, operational and financial strategies of the BCB, including their respective medium-and long-term programmes, monitoring and evaluating their implementation. It shall provide the Directory with the necessary analysis and audit information and services for the performance of its functions and act on behalf of the Board and chair its meetings. He will have a vote in case of a tie. Article 58. The President is an exclusive official and will not be able to hold any other public or private office, except for university teaching. Article 59. The President has the following powers:
To direct and supervise actions leading to compliance with this Law, to the Statute and to any other legal provision whose execution corresponds to the BCB.
Propose policies that correspond to the Directory in accordance with this Law and the measures and resolutions it deems relevant for the best compliance of the object, policies and functions of the BCB.
Dispose, monitor and control the execution of policies, rules, resolutions and decisions approved by the Directory, as well as monitor compliance by the competent BCB instances.
Monitor BCB operations and management and monitor and evaluate the performance of the General Manager and the other BCB Managers.
Exercise the legal representation of the BCB, without prejudice to its powers of delegation according to this Law.
Present to the Board of Directors the Annual Report, the duly audited Financial Statements, the BCB Budget and the short and medium term operational, financial and administrative programs, as well as the expected reports in Chapter VII of Title II of this Law.
Grant special powers to third parties.
Those that are necessary for the performance of their duties as the first BCB executive authority and those referred to in this Law.
Article 60. In duly justified cases of emergency, where it is not possible to bring the Board together, the President may, by way of derogation, adopt, within 48 hours, decisions corresponding to that body. The President shall inform the Board at its next meeting of the decisions taken, without responsibility for the Directors. Article 61. The President shall represent the BCB jointly with the General Manager, and may delegate this representation to third parties by means of special powers. CHAPTER III
THE VICE PRESIDENT OF THE ARTICLE 62 DIRECTORY. At the beginning of each year, by a majority of votes from all its members, the Board will elect one of its Directors as Vice President. Article 63. In the event of the President's absence or temporary impediment, it will be up to the Vice President to replace it in a transitional manner with all the powers conferred on the President by this Law. Article 64. The Directory will designate one of its members to replace the Vice President in the event of a temporary absence or impediment. CHAPTER IV
GENERAL GERENT Article 65. The General Manager will be appointed by the President of the BCB, with the approval of the absolute majority of all members of the Board. The General Manager is the first operational authority of the BCB, responding directly to the President, and is therefore responsible for the internal management and administration of the BCB, in the form and with the privileges assigned to it by this Law, the Statute and the Regulations of the institution. Article 66. The General Manager shall meet the requirements set out in Article 46 and shall be included within the prohibitions laid down in Article 47. You must have a university degree. The General Manager may be removed by the causes mentioned in Article 50, or by absolute majority of all members of the Board. Article 67. They are the privileges of the General Manager:
Exercise, without prejudice to the provisions of Article 61, the representation of the BCB in acts and contracts concerning internal administration.
Manage the operations of the BCB, according to with the policies established by the Directory and the instructions given by the President.
Attend the meetings of the Directory, with the right to voice but no vote.
Run the bidding, hiring and their respective processes supervision of the acquisition, disposal and leasing of movable and immovable property property of the BCB.
All those that are necessary for the fulfillment of your responsibilities within the framework of this Law.
TITLE IV
REGIME
CHAPTER I
STAFF REGIMEN Article 68. Within the framework of laws and labour standards of a general nature, the internal labour law of the BCB will be established by its Board through the respective staff regulations. The conditions of employment in the BCB will be based on a system of personnel management that will seek the continuous improvement of the capacity and performance of the public servant, in order to seek their timely promotion, following competitive procedures. The remuneration shall be recognised as continuing. Article 69. For the public nature of the services provided by the BCB, its activities may not be interrupted except for holidays established by Law or those provided by the Board of Directors of the BCB. Article 70. The employees of the BCB will receive twelve monthly salaries and a bonus each year. Out of these emoluments you will receive the equivalent of two months of additional salary for Prima Annual, not being able to receive any other gratification or extraordinary remuneration. The only mandatory wage increases will be those set by law for public administration. CHAPTER II
FINANCIAL AND ACCOUNTING REGIME Article 71. The capital of the BCB is Bs. 500,000,000 (FIVE HUNDRED MILLION BOLIVIANS). It is non-transferable and cannot be guaranteed. Their assets are unembargable. Article 72. The State may increase the capital of the BCB through specific contributions with funds entered in the National Budget. It may also be increased by capitalization of profits and free reserves, by agreement of the majority of the total members of the Board of Directors of the BCB. Article 73. The BCB shall constitute a Legal Reserve equivalent to once its capital, intended to cover any losses. For the formation of the Legal Reserve, the BCB will assign a sum equal to or greater than 25% of the net profits of each management, according to the Board's criteria, up to the expected amount. The Board of the BCB may create other reserves and determine the form of its constitution. Article 74. Changes in the valuation of international reserve assets and in BCB obligations denominated in foreign currency, by fluctuations in foreign exchange rates or in their international contributions, shall be recorded in an account Special reserve. Gains and losses due to differences in exchange, emerging from transactions made during each financial year, shall be attributed to the results of the management in which they are incurred. Article 75. Once the charges have been made to the Legal Reserve account, constituted the respective provisions and made the contributions to the other reserves, the remainder of the net profits of the financial year will be used to increase the capital of the BCB or the write-down of the public debt, upon resolution of the Board. Article 76. The annual management of the BCB begins on 1 January and concludes on 31 December of each year. The Financial Statements shall be in line with the BCB's specific accounting manual, taking into account generally accepted accounting principles and accounting standards issued by the Superintendency of Banks and Financial Entities. CHAPTER III
AUDITING AND CONTROL Article 77. The internal audit of the operations and the accounts of the BCB shall be carried out by an Internal Auditor to be appointed by the Board of Directors of the BCB, by an absolute majority of all its members, to whom it will respond. He must have a university degree and experience in the field of his competence. Article 78. The Internal Auditor shall last four years and his appointment may be renewed, after a period equal to that during which he served. During this time you will be able to perform in other functions of equal hierarchy in the BCB. It falls within the prohibitions of Article 47 and may be removed by the
causes noted in Article 50 or by decision of the absolute majority of the total members of the Board. Article 79. The external governmental control of the BCB will be in charge of the Commissions of the Legislative Chambers, of the Comptroller General of the Republic, according to Law. The Superintendency of Banks and Financial Entities will exercise oversight over the financial intermediation activities that the BCB will execute, according to Law. TITLE V
CHAPTER ONLY ADMINISTRATIVE FAULT REGIME Article 80. The BCB's Directors, officials and employees are required to keep secret of the BCB's affairs and operations, financial institutions and their operations, as well as documents or reports related to them that arrive. to their knowledge in the performance of their duties. The Directors, officials and employees of the BCB who use any information of a confidential nature, belonging to the BCB and the financial intermediation system, shall incur liability for the benefit of the BCB and the financial intermediation system. Nation, BCB or third parties. Those obligations and responsibilities shall be extended even after they have ceased their duties or have been disengaged from the BCB. The Director, official or employee who infringes this prohibition shall be removed from office, without prejudice to the corresponding civil or criminal liability. In the event of the cessation of their duties or the disconnection of the BCB, the penalties laid down by law shall apply. The above is not applicable in relation to the periodic publications on all BCB operations of a monetary, exchange and credit nature which for general information purposes are carried out by the BCB. It also does not apply to BCB administrative information or to statements that are requested by a competent court, within legal proceedings. TITLE VI
TRANSFER OF FUNCTIONS
CHAPTER I. CULTURAL FOUNDATION OF THE CENTRAL BANK OF BOLIVIA
Article 81. Create THE CULTURAL FOUNDATION OF THE CENTRAL BANK OF BOLIVIA as a state collective person public law, under the jurisdiction of the BCB, with its own legal personality and its own patrimony, with administrative, technical and financial competence, the functioning of which shall be governed by the cultural policies issued by the Executive Branch and by its statutes. will be approved by the BCB Directory. The FOUNDATION shall be aimed at maintaining, protecting, preserving, promoting and administering the National Repositories referred to in Article 82 below. It will be led by a Board of Directors composed of seven directors of recognized prestige in the cultural and historical fields: four appointed by the Board of Directors of the BCB and three by the Ministry of Human Development. They will last for five years and can be re-elected. Article 82. The FOUNDATION will have the creation and administration of the following National Repositories: National Mint (Potosí), Casa de la Libertad (Sucre), National Archives and Library of Bolivia (Sucre) and National Museum of Ethnography and Folklore (La Peace), without losing their status as cultural and historical patrimony of the Nation. The BCB shall incorporate in its annual budget a financial support for the FOUNDATION, which shall not be less than the budget item executed in the previous management for current expenditure. It may also affect the FOUNDATION, by resolution of its Board, other rights and securities that support the financial support of the institution. Article 83. The national repositories, which are dependent on the foundation, will continue to enjoy the same rights and will fulfill the functions and services assigned to them by the legal norms in force. The staff currently serving in the aforementioned National Repositories may become dependent on the FOUNDATION after the liquidation of their social benefits. The legal acts of transfer, transfer and transfer of immovable property, furniture and property rights of the BCB in favor of the FOUNDATION, will be exempt from the payment of taxes. CHAPTER II.
BOLIVIAN FINANCIAL NATIONAL S.A.M. Article 84. For the purpose of continuing with the functions of the current Management of Development of the BCB, the Convention signed in La Paz on 24 November 1994, between the Republic of Bolivia, represented by the Ministry of Education, is approved and authorized in all its parts. Hacienda, and the Andean Development Corporation for the constitution of the? Bolivian National Financial Company Mixed Anonymous Company? (NAFIBO S.A.M.) to be unwrapped in the framework of the provisions of Article 31 (i) of this Law. The contribution with which the State will participate in the aforementioned Society, which reaches two hundred and seventy million Bolivians (Bs270,000,000.-), is approved in accordance with the provisions of Article 430º of the Code of Commerce. Article 85. The BCB is authorized to transfer the assets generated with the resources managed by the Development Management of the Issuer Institute in favor of the Bolivian Financial National S.A.M. The liabilities that are transferred from the BCB to the Bolivian Financial National S.A.M., will maintain the terms and conditions originally agreed in the respective contracts. The BCB is also authorised to negotiate with the creditors of the resources administered by its Development Management, the modifications, clarifications and complementarities of the existing loan agreements in order to transfer the rights and The Board of Directors of the BCB will determine the dates and amounts in which the transfers indicated above will be made, and will agree with the National Financial Institution. Financial Boliviana S.A.M. the value and forms of payment of the assets that will be transferred to you. TITLE VII
OTHER PROVISIONS
CHAPTER I GENERAL PROVISIONS
Article 86. The BCB may not acquire or maintain equity holdings in private, public or mixed, financial or non-financial undertakings, except in international financial institutions governed by public law. In those cases where the shares or shares of the BCB, in any type of undertaking or entity, have as their origin the payment of debts, the capitalisation of creditors or the award of a judicial award, their disposal shall be carried out in accordance with the for consideration, within one year of its acquisition, except in the case of duly justified impossibility. Article 87. With the exception of Title II, Chapter VII of this Law, the BCB shall not be able to make loans to persons or entities governed by private law, including its Board of Directors, officials and dependent personnel, or to accept deposits of " CHAPTER II
TRANSIENT provisions Article 88. The period of duration in the office of the first Directors shall be defined by lot, so that they are replaced at the rate of one per year in the form set out in Article 45. The Directors, who, by effect of this Sweepstakes, will be able to be re-elected for a period of less than five years. Article 89. The entities set up to date have a maximum period of 30 June 1998 to comply progressively, in half-yearly periods, with the provisions relating to the linked credits prescribed in this Law. The new financial institutions will have to comply with Articles 32 and 33 of this Law since their creation. CHAPTER III FINAL PROVISIONS Article 90. Decree Law 14791 of 1 August 1977 is hereby abrogated. Repeals:
Law No. 1178 of July 20, 1990, in Article 24.
Law No. 1488 of 14 April 1993, in its Articles: 21, in its second paragraph, 40, 46, 47, 48 (1st), 49, 50, 71 in its second paragraph, 76 in its first paragraph, 82, 83, 119, in its second paragraph, 141, 142, 143, 144, 145, 146, 147, 148, 149, 150, 151, number 5) of Article 154
All other provisions contrary to this Law. It is modified:
Law 901 of November 28, 1986, as appropriate.
Law No. 1488 of 14 April 1993, in its Articles 118, eliminating the sentence? with the agreement of the Central Bank of Bolivia?, 120 removing the sentence ? with favorable opinion of the Central Bank of Bolivia?, 128, eliminating? up to one per thousand of the net worth of the financial institution?.
Law No. 1493 of 17 September 1993 in its Article 18 (b).
Supreme Decree No. 23660 of 12 October 1993, in Article 44, paragraph (a) eliminating the sentence? and participating in the formulation of monetary and financial policies?
26 of Law No 1178 of 20 July 1990, in its Article 26, regarding the power conferred on the Superintendency of Banks to express opinions on the effectiveness of the rules and regulations dictated by the BCB, is not
Pass to the Executive Branch, for constitutional purposes. It is given in the Session Room of the Honorable National Congress, at the thirty days of the month of October of a thousand nine hundred and ninety-five years. Fdo. Juan Carlos Duran Saucedo, Guillermo Bedregal Gutierrez, Walter Zuleta Roncal, Horacio Torres Guzman, Miguel Antoraz Chalup, Luis Sanabria Taboada. Therefore, it was enacted so that it has and will comply with the law of the Republic. Palace of Government of the city of La Paz, at thirty-one day of the month of October of a thousand nine hundred and ninety-five years. FDO. GONZALO SÁNCHEZ DE LOZADA, Bolivia's Constitutional President, Fernando Candia Castillo, Minister of Finance. ERRATA FE In the first dump of the Official Gazette No. 1910 of October 31, 1995, an involuntary transcription error was omitted, which in this edition corrects the following: Article 11.-Last line says: it will have to be approved legislative, you must say: in both halves of the same
Article 16.-Last line says: you must have legislative approval, you must say: You must have legislative parobation.
Article 33.-(c) in the first and second line says: in the above categories, must say: in the preceding paragraph. Article 89.- On the second line, it says on June 30, 1989, must say on June 30, 1998.
