Whereby Operations Internal And External Indebtedness Of The Nation Are Authorized Operations For Reorganizing Public Sector Debt Obligations Are Permitted, They Are Granted Powers And Other Provisions

Original Language Title: Por la cual se autorizan operaciones de endeudamiento interno y externo de la Nación, se autorizan operaciones para el saneamiento de obligaciones crediticias del sector público, se otorgan facultades y se dictan otras disposiciones

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LAW 185
1995 (January 27)
Official Gazette No. 41,690 of 27 January 1995.
Whereby internal operations and external indebtedness of the Nation are authorized operations are permitted for the sanitation of public sector credit obligations, powers are granted and other provisions. Summary

Term Notes
THE CONGRESS OF COLOMBIA,
DECREES: CHAPTER I.

INDEBTEDNESS OF THE NATION.
SECTION I.

AUTHORIZATION OF INTERNAL DEBT.
ARTICLE 1o. Amplíanse at $ 450.000.000.oo authorizations granted to the national government by the article 1o. Act 51 of 1990 and previous legislation, to enter into transactions internal public credit, different from those expressly permitted by other laws, designed to finance budgetary appropriations, programs and projects of economic and social development, and to ensure operations of internal public credit.
PARÁGRAFO. The authorization referred to in this Article, will be affected by the national government concept Public Credit Commission prior. Effective Notes


SECTION II.
OF TREASURY.
Article 2.
. The National Treasury is authorized to cover the costs of temporary passive treasury operations perform with the returns generated by placing their temporary surpluses.
If appropriate to absorb the outcome of these operations is insufficient, the respective presupuestases adjustments will be made to cover such costs.

ARTICLE 3. The National Treasury may grant treasury loans for a term not exceeding the fiscal year, to decentralized entities at the national and territorial entities and decentralized, in accordance with the conditions and requirements established by the Ministry of Finance and Public credit.
PARÁGRAFO. The provisions of this Article shall apply to all mixed-economy societies governed by the rules laid down for industrial and STEs.
SECTION III.

EXTERNAL BORROWING AUTHORIZATION
ARTICLE 4. Amplíense in six in 1900 million dollars of the United States of America (US $ 6.9 billion) or its equivalent in other currencies, the authorizations granted to the Government by Article 10 of Law 51 of 1990 and other previous laws, to celebrate and ensure external public credit operations, different from those expressly permitted by other laws, intended to finance programs and projects of economic and social development.
PARÁGRAFO. The authorization referred to in this Article, will be affected by the national government concept Public Credit Commission prior. Effective Notes


The 5th ITEM. In the event that the authorization referred to article 1. of this Act is exhausted, the Government may use the amount approved in the article 4. of this Act, to celebrate and to ensure internal public credit operations.
In the event that the authorization referred to in article 4. of this Act is exhausted, the Government may use the amount approved in article 1. of this Act, to celebrate and to ensure external public credit operations. PARAGRAPH 1.
. Authorizations referred to in this article require prior opinion of the Commission of Public Credit. PARAGRAPH 2.
. The faculty mentioned in the first paragraph of this Article shall be used only for the nation, to ensure internal public credit operations.
CHAPTER II.
SANITATION OF PUBLIC SECTOR LIABILITIES AND RECEIVABLES

ARTICLE 6o. The national government and decentralized entities at the national and local authorities and decentralized, are powers to make payments in compensation and to meet credit obligations of local authorities and decentralized.
The completion of these transactions must be authorized, for the case where the Nation or decentralized national entities involved, through a decree issued by the Government; in other events, it must be authorized by an administrative act of the competent authorities of the parties involved in the operation.
PARÁGRAFO. Dation in payment and compensation referred to in this Article shall be made prior commercial appraisal of the property by the competent state agency.


ARTICLE 7. The operations referred to in Article 13 of Law 51 of 1990 may be made between the national government and public entities and between them together. Similarly, the Government may order novation of obligations made between the aforementioned entities.
PARÁGRAFO. Authorizations referred to in this article require prior opinion of the Commission of Public Credit. Effective Jurisprudence


Article 8. The Government may capitalize decentralized national entities or order the capitalization of these entities together. For this purpose, contributions may be made in cash or in kind or debt assumptions made.
In the event that capitalizations through in-kind contributions are made, the valuation thereof shall be in accordance with the regulations for the purpose by the Ministry of Finance and Public Credit. PARAGRAPH 1.
. The Government may assume debt of decentralized national entities, in exchange of assets or shares owned by such entities. PARAGRAPH 2.
. Capitalizations referred to in this article may not be used to cover ongoing operating deficit.

Article 9. Entities subject of sanitation of credit obligations of the public sector covered by Article 16 of Law 51 of 1990 and the laws that modify or add, as well as public entities that have obligations to the nation or guarantees of this, overcome by more than 90 days, where provided the Ministry of Finance and Public Credit, will undergo a recovery program that tries that provision.

ARTICLE 10. To authorize the Nation to recruit directly, the constitution of trusts to give in management assets from debt assumptions made by the National Government in development of Chapter III of Law 51 of 1990 and the laws that modify or add, as well as hiring consultants required to dispose of such assets and the portfolio management of the Nation.
CHAPTER III.
GENERAL PROVISIONS.

ARTICLE 11. The licenses granted to the Nation by Articles 1. and 4o. of this Act, shall be construed out once they are fully utilized. The contracted amounts that they be canceled for non-use be subject to the provisions of this law and the provisions of Law 80 of 1993, its regulations and other rules that modify or add.
The Ministry of Finance and Public Credit, will affect the authorizations granted by this Act on the date it is approved the minutes of the credit operation, by the Ministry of Finance and Public Credit Directorate General of Public Credit .
For this purpose, in the case of issuance of securities defined period after the deadline placement thereof, the respective issue authorization means extinguished and affected quotas will be increased by the amount corresponding to the portion not placed of the issue.

ARTICLE 12. The capacity of state institutions to enter into contracts that deal with public credit operations and assimilated, debt management operations and related to them, as well as prior to its celebration formalities shall be governed by Colombian law.
ARTICLE 13.


Effective Notes

Previous legislation ARTICLE 14.
lending financed incorporated in the General Budget of the Nation and the guarantee by the Nation revenues, state entities must establish adequate guarantees and counter-guarantees, according to the Ministry of Finance and Public credit.
Nation Under no circumstances may grant loans or guarantee budget payment obligations of state entities that are not in good standing on their payment obligations of public credit operations and assimilated, of debt management operations with the Nation, nor may extend its guarantee to already contracted operations if they were originally contracted without warranty of the Nation.
PARÁGRAFO. The Ministry of Finance and Public Credit - Directorate General of Public Credit - may issue the peace and unless dealt with in this Article, where the existence or enforceability of the outstanding obligations in favor of the Nation, by entities state are being decided by the judicial authorities or by a court of arbitration.

ARTICLE 15.
public credit operations and assimilated than one year, the debt management operations and related planning to convene the Nation or decentralized national entities which do not have procedures laid down in this Act or the laws and regulations, will require authorization from the Ministry of Finance and Public Credit or his delegate. Such authorization may be granted individual or general, depending on the amount and mode of operation.
ARTICLE 16.
should be included in the single database of the Ministry of Finance and Public Credit Directorate-General of Public Credit, public credit operations, its assimilated and debt management operations, which held state entities with term exceeding one year, those contracted with shorter period and that for purposes of holding management operations exceed that period and those involving derivatives, in the latter case regardless of the term.
The information regarding balances and movements of such operations must be provided monthly within the first ten (10) calendar month following that report, according to the instructions for that purpose to impart the Directorate General days Public Credit.
Without prejudice to the provisions of the preceding paragraphs, in the case of operations of internal public credit decentralized national entities, territorial and decentralized, the inclusion in the single database will be required for the first disbursement . PARAGRAPH 1.
. The provisions of this Article shall apply also to entities with state participation exceeding fifty percent of its share capital, regardless of their nature. PARAGRAPH 2.
. The inclusion in the single database of the Ministry of Finance and Public Credit Directorate-General of Public Credit, shall be in the form, terms and conditions regulated by the Government. Effective Notes



Previous legislation
ARTICLE 17. The legal action for the recovery of interest and capital of the Public Debt Securities will expire within a period of four (4) years from the date of its enforcement. The right arising from such securities expire in the same time period.

ARTICLE 18. The decrees and resolutions authorizing the hiring of management and operations of public credit and assimilated, debt management operations and related thereto, will apply from the date of its publication in the Official Journal a requirement which means complied with the order given by the director General of Public Credit.
ARTICLE 19.


Term Notes Legislation Previous



ARTICLE 20.
debt management operations do not constitute new funding and therefore will not affect borrowing authorizations covered by this law.

ARTICLE 21. Authorize the National Government to issue the domestic public debt referred to in Chapter VIII of Law 160 of 1994, for the purposes thereof, prior opinion of the Commission of Public Credit.
PARÁGRAFO. The powers referred to in this Article shall not affect authorizations referred to in articles. 1o. and 4o. of this law.

ARTICLE 22. For purposes of authorizing the opening of bidding processes or public or private, contests concession contracts and those contracts to develop schemes for private participation in infrastructure projects and public services, the Ministry of Finance may establish minimum requirements and general procedures to facilitate such processes and ensure that financial terms thereof are suitable for the country.

ARTICLE 23. For the implementation of this law, the National Government is empowered to take all measures and perform the necessary operations budget.

ARTICLE 24. For all purposes under the 5th paragraph. the 2nd paragraph. Article 41 of Law 80 of 1993, the Commission on Public Credit will issue a preliminary concept that allows initiating the necessary steps for public credit operations and a final concept that enables the execution thereof in each particular case.
Excepted from the above operations related to the issuance, underwriting and placement of bonds and securities, for which the Commission of Public Credit, shall deliver its concept for once. Effective Jurisprudence



ARTICLE 25. While Article 364 of the Constitution, understood for the purposes of Article 593 of Decree 2626 of 1994, which are included entries received by the municipalities under Law 60 of integrally developed by law
1993. If a municipality that is processing a credit result exceeded those limits must obtain prior authorization from the Ministry of Finance and Public credit.
Such authorization shall be granted or denied by the Ministry of Finance and Public Credit within 30 calendar days.

ARTICLE 26. This law governs from the date of its enactment and repeal all provisions that are contrary and in particular Articles 30 of the Law 9a. 1991, the second paragraph of article 1. and paragraph of Article 10 of Law 51 of 1990, Decree 620 of 1994, the 2nd paragraphs. and 3o. Article 41, 2nd paragraphs. and 3o. Article 42 and Article 43 of Decree 2681 of 1993.

The President of the Senate of the Republic, Juan Guillermo Angel MEJÍA

The Secretary General of the Senate of the Republic, PUMAREJO VEGA PEDRO

The President of the Chamber of Representatives,
BENEDETTI ALVARO VARGAS.
The Secretary of the Chamber of Representatives, DIEGO VIVAS
TAFUR.
Republic of Colombia-Government nacionl

published and execute Given in Bogotá DC, on January 27, 1995

Ernesto Samper Pizano Minister of Finance and Public Credit, || | WILLIAM PERRY RUBIO


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