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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ACT 185 OF 1995

(January 27)

Official Journal No. 41,690 of 27 January 1995.

By which domestic and external debt operations are authorized, operations are authorized for the consolidation of public sector credit obligations, powers are granted, and other provisions are dictated.

THE CONGRESS OF COLOMBIA,

DECRETA:

CHAPTER I.

INDEBTEDNESS OF THE NATION.

SECTION I.

INTERNAL BORROWING AUTHORIZATION.

ARTICLE 1o. Expand on $450,000,000,oo the authorizations granted to the National Government by Article 1o. of Law 51 of 1990 and previous laws, to conduct internal public credit operations, several to those expressly authorized by other laws, intended to finance budget appropriations, programs and projects for economic development and and to ensure internal public credit operations.

PARAGRAFO. The authorization of this article will be affected by the National Government's previous concept of the Public Credit Commission.

SECTION II.  

TREASURY OPERATIONS.

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ARTICLE 2o. The National Treasury Department is empowered to cover the costs arising from temporary passive operations of Treasury that it performs, with the yields generated by the placement of its Transitional surpluses.

If appropriate to absorb the result of these operations is insufficient, the respective budgetary adjustments will be made to cover such Costs.

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ARTICLE 3o. The National Treasury Department may grant treasury credits for up to a period that does not exceed the fiscal validity, the decentralized entities of the national order, and the entities and its decentralized, in accordance with the conditions and requirements established by the Ministry of Finance and Public Credit.

PARAGRAFO. The provisions laid down in this Article shall apply to all the mixed-economy companies governed by the rules laid down for industrial and commercial undertakings in the State.

SECTION III.  

EXTERNAL BORROWING AUTHORIZATION

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ARTICLE 4. Extend by six thousand nine hundred million dollars from the United States of America (US$6,900,000,000) or its equivalent in other currencies, the authorizations granted to the National Government by Article 10 of Law 51 of 1990 and other laws to conclude and guarantee external public credit operations, which are expressly authorized by other laws, intended to finance programs and projects for economic and social development.

PARAGRAFO. The authorization of this article will be affected by the National Government's previous concept of the Public Credit Commission.

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ARTICLE 5o. In the event where the authorization that you are dealing with is 1or. of this law is exhausted, the National Government will be able to use the amount approved in article 4or. of this law, in order to celebrate and guarantee internal public credit operations.

In the event where the authorization that you are dealing with is 4or. of this law is exhausted, the government may use the amount approved in article 1or. of this law, in order to celebrate and guarantee external public credit operations.

PARAGRAFO 1o. The authorizations in this article require the prior concept of the Public Credit Commission.

PARAGRAFO 2o. The faculty that deals with the first paragraph of this article may only be used by the Nation to ensure internal public credit operations.

CHAPTER II.  

CONSOLIDATION OF PubBLICO SECTOR CREDIT OBLIGATIONS

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ARTICLE 6o. The National Government and the decentralized entities of the national order, as well as the territorial entities and their decentralized entities, have the power to make compensation and payment to meet credit obligations of the national authorities. territorial entities and their decentralised entities.

The conduct of these operations must be authorized, in case the Nation or the decentralized entities of the national order intervene, by decree issued by the National Government; in other events, it must be authorized by an administrative act of the competent authorities of the parties involved in the operation.

PARAGRAFO. The payment of the payments and the compensation referred to in this Article shall be made prior to the commercial value of the goods by the competent state entity.

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ARTICLE 7o. The operations provided for in Article 13 of Law 51 of 1990 may be carried out between the Nation and the public entities, and between them. Similarly, the National Government may order that new obligations be made between the aforementioned entities.

PARAGRAFO. The authorizations in this article require the prior concept of the Public Credit Commission.

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ARTICLE 8. The National Government will be able to capitalize on the decentralized entities of the national order or order the capitalization of these entities. For such purposes, contributions may be made to money or in kind or to debt transactions.

In the event that capitalisations are performed through in-kind contributions, the valuation of the contributions must be carried out in accordance with the regulations that the Ministry of Finance and Public Credit will issue for the purpose.

PARAGRAFO 1o. The National Government will be able to assume debt of decentralized entities of the national order, in exchange for assets or shares of ownership of such entities.

PARAGRAFO 2o. The capitalizations in this article cannot be used to cover permanent operational deficits.

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ARTICLE 9o. The entities subject to the consolidation of public sector credit obligations under Article 16 of Law 51 of 1990 and the laws that modify or add to it, as well as the entities public that have obligations to the Nation or guarantees from it, due more than 90 days, when the Ministry of Finance and Public Credit so provides, they will undergo a recovery program that treats that disposition.

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ARTICLE 10. Authorize the Nation to hire directly, the formation of fiducias to give in administration the assets arising from debt assumptions made by the National Government, under the development of Chapter III of Law 51 of 1990 and the laws that modify or add to it, as well as the hiring of required advisors to dispose of such assets and the administration of the Nation's portfolio.

CHAPTER III.  

GENERAL PROVISIONS.

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ARTICLE 11. The authorities granted to the Nation by items 1or. and 4or. of this law shall be deemed to be exhausted once they are used in full. The contracted amounts which are cancelled for non-use shall be subject to the provisions of this Law and to the provisions of Law 80 of 1993, their regulations and other rules which modify or add to it.

The Ministry of Finance and Public Credit will affect the authorizations granted by this law, on the date the minute of the credit operation is approved, by the Ministry of Finance and, Public Credit Public Credit.

For these purposes, in the case of the issue of securities with a defined time limit, the time limit for their placement shall be expired, the respective emission authorisation shall be deemed to be extinguished and the quotas concerned shall be increased by the amount of the corresponding to the unplaced portion of the issue.

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ARTICLE 12. The capacity of the State entities to conclude contracts covering public credit operations and their assimilated operations, debt management operations and those related to them, as well as the formalities prior to their conclusion, shall be governed by by Colombian law.

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ARTICLE 13. 16 of Law 781 of 2002 >

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ARTICLE 14. For the granting of credits financed with revenue incorporated in the General Budget of the Nation and the guarantee by the Nation, the state entities must constitute adequate guarantees and counter-guarantees, in the view of the Ministry of Finance and Public Credit.

In no case will the Nation be able to grant budget credits or guarantee payment obligations for state entities that do not find themselves at peace and except in their payment obligations arising from public credit operations and their assimilated, debt management operations with the Nation, nor will it be able to extend its guarantee to already contracted operations, if they were originally contracted without a guarantee from the Nation.

PARAGRAFO. The Ministry of Finance and Public Credit-General Directorate of Public Credit-may issue peace and except in this article, where the existence or enforceability of the outstanding obligations in favour of the Nation, on the part of the state entities are being settled by the judicial authorities or by an arbitration tribunal.

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ARTICLE 15. The public credit operations and their equivalent over one year, the debt management operations and the related projects that the Nation or the decentralized entities of the national order plan to hold, that do not have a procedure foreseen in the This law or in the laws and regulations in force, will require authorization from the Ministry of Finance and Public Credit or from whom this delegate. Such authorization may be granted individually or in general, depending on the amount and mode of the operation.

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ARTICLE 16. 13 of Law 533 of 1999. The new text is as follows: > To be included in the single database of the Ministry of Finance and Public Credit-Directorate General of Public Credit, public credit operations, their assimilated and debt management operations, which (a) the holding of the State institutions with a term of more than one year, those contracted with a lower term and which, for the purposes of the conduct of management operations, exceed that period and, those which include derivatives, in the latter case regardless of the deadline.

Information concerning balances and movements of such transactions shall be provided monthly within the first ten (10) calendar days of the month following the month that is reported, in accordance with the instructions for this purpose. provides the General Directorate of Public Credit.

Without prejudice to the provisions of the above provisions, in the case of domestic public credit operations of the decentralised entities of the national order, the territorial and its decentralised entities, the inclusion in the single database will be a requirement for the first disbursement.

PARAGRAFO 1o. The provisions of this Article shall also apply to entities with a State participation of more than fifty percent in their share capital, regardless of their nature.

PARAGRAFO 2o. The inclusion in the single database of the Ministry of Finance and Public Credit-Directorate General of Public Credit, will be carried out in the form, deadlines and conditions that the National Government rules.

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ARTICLE 17. Judicial actions for the collection of interest and capital of Internal Public Debt Titles shall expire within four (4) years from the date of their enforceability. The right derived from such titles will be prescribed in the same time period.

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ARTICLE 18. The decrees and resolutions that authorize the management and contracting of public credit operations and their assimilations, debt management operations and those related to them, will govern the date of its publication in the Official Journal, a requirement that is understood to be met with the order given by the Director General of Public Credit.

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ARTICLE 19. 154 of Law 488 of 1998. >

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ARTICLE 20. Debt management operations do not constitute new financing and therefore will not affect the indebtedness authorizations that this law treats.

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ARTICLE 21. Authorize the National Government to issue the securities of domestic public debt in Chapter VIII of Law 160 of 1994 for the purposes provided for in Chapter VIII, prior to the Public Credit Commission.

PARAGRAFO. The powers referred to in this article do not affect the authorizations for which the articles are dealt with. 1or. and 4or. of this law.

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ARTICLE 22. For the purposes of the authorization of the opening of tender processes or contests, public or private, of concession contracts and of contracts that develop schemes of private participation in infrastructure and services projects public, the Ministry of Finance and Public Credit will be able to establish minimum requirements and general procedures to facilitate such processes and ensure that the financial terms of these processes are appropriate for the country.

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

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ARTICLE 24. For all the effects specified in paragraph 5o. of paragraph 2o. Article 41 of Law 80 of 1993, the Public Credit Commission will issue a preliminary concept that allows to initiate the necessary steps for public credit operations and a definitive concept that make possible the execution of the same in each particular case.

The operations related to the issuance, subscription and placement of bonds and securities, for which the Public Credit Commission, will issue its concept for one time, are excepted.

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ARTICLE 25. While the article 364 of the Political Constitution is fully developed by the law, it will be understood for the purposes of article 593 of Decree 2626 of 1994, which are included in the participations received by the municipalities under Law 60 of 1993.

If any municipality that is processing a credit will be exceeded by such limits, it must obtain the prior authorization of the Ministry of Finance and Public Credit.

Such authorization must be granted or denied by the Ministry of Finance and Public Credit before 30 calendar days.

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

The President of the Honorable Senate of the Republic,

JUAN GUILLERMO ANGEL MEJIA

The Secretary General of the Honorable Senate of the Republic,

PEDRO PUMAREJO VEGA

The President of the Honorable House of Representatives,

ALVARO BENEDETTI VARGAS.

The Secretary of the Honorable House of Representatives,

DIEGO VIVAS TAFUR.

Republic of Colombia-Government Nacionall

Publish and execute

Dada en Santafe de Bogota D.C., a 27 de enero de 1995

ERNESTO SAMPER PIZANO

The Minister of Finance and Public Credit,

GUILLERMO PERRY RUBIO

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