242 OF 1995

(December 28)

Official Journal No. 42,169 of 29 December 1995

By which some rules are modified that enshrine the growth of the consumer price index of the previous year as a factor for the adjustment of values, and other provisions are dictated.

THE CONGRESS OF COLOMBIA,

DECRETA:

ARTICLE 1o. OBJECT. This Law amends the legal rules that take into account past behavior of the Consumer Price Index as a readjustment factor of fines, cadastral values, ranges, amounts and royalties, and instead establish criteria that refer to the inflation target, with the aim of adjusting the legislation in a way that serves as an instrument for the disindexation of the economy, in accordance with the Social Pact of Productivity, Prices and Salaries. It also determines how the inflation target will be taken into account in the issuance of rules by the National Government and the District, Municipal and Department Administrations.

PARAGRAFO. Adjustments in tuition and educational pensions will continue to be governed by the provisions of Law 115 of 1994 (General Law of Education).

ARTICLE 2o. DEFINITIONS. For the purposes set out in this law, the following definitions are adopted:

IPC: Consumer Price Index calculated by the National Administrative Department of Statistics (Dane) for the national total, total items and total revenue, or the index that makes its times.

Inflation: Cumulative CPI change over a calendar year.

Inflation Goal: It is the percentage of inflation that is expected for the following year, as determined by the Board of Directors of the Bank of the Republic or the entity that does its times at the end of each year.

Values: Currency figures in Colombian pesos.

ARTICLE 3o. PROVISIONS APPLICABLE TO THE ISSUANCE OF RULES THAT TAKE INTO ACCOUNT INFLATION. The National Government as well as the Departmental, District and Municipal Administrations, when issuing rules that provide for the updating of securities subject to their determination by law, shall take into account the inflation target as an estimate of the price behaviour of the year in which those values are applied. The above does not exclude the possibility of taking into account, additionally factors other than the maintenance of the real value in the determination of the readjustment, factors that must be expressed in the norm.

For calculations that also involve readjustments for previous years, when updating the value, the corresponding inflation recorded by the Dane will be used for the adjustment in each of those years, and the inflation target will be used. for the adjustment of the current year. If the calculation is to be made each year, the corresponding inflation target will be used each time, which will be applied to the value determined the previous year without correcting the differences between the target adopted in that year and the recorded inflation.

PARAGRAFO. Salaries, tables and pensions in general will continue to be governed by the current constitutional and legal provisions.

ARTICLE 4. AMENDMENT OF THE RULES THAT USE THE INFLATION OF THE PREVIOUS YEAR AS A FACTOR FOR THE ANNUAL ADJUSTMENT OF FINES. As of the validity of this Law, modify all those rules that consent to the variation of the price index to the the consumer of the previous year as a factor for updating the value of fines or penalties, in the sense that they will be adjusted annually by a percentage equal to the inflation target set for the year in which the adjustment is made.

ARTICLE 5o. MODIFICATION OF THE RULES THAT USE THE INFLATION OF THE PREVIOUS YEAR AS A FACTOR FOR THE ADJUSTMENT OF AMOUNTS OR RANGES. From the time of this Law, modify all those that consent to the variation of the consumer price index. of the previous year as a factor for updating amounts or ranges of values that define the differential application of a provision, in the sense that they will be readjusted annually by a percentage equal to the inflation target set for the year in question. to be re-adjusted.

ARTICLE 6o. amendment of Article 8o of Law 44 of 18 December 1990. Article 8o. Law 44 of 1990 will be as follows:

" Annual adjustment of the base. The value of the castral avalums shall be readjusted annually from the 1st. of January of each year, in a percentage determined by the National Government prior to the National Council of Economic and Social Policy (Conpes). The rate of increase may not exceed the inflation target for the year in which the increase is defined.

In the case of non-formed prediums the percentage of increase referred to in the preceding paragraph may be up to 130% of the above mentioned goal.

PARAGRAFO 1o. This readjustment will not apply to those pregod whose cadastral avaluing has been formed or readjusted during that year.

PARAGRAFO 2o. If there are differences between the inflation target and the inflation rate recorded by the Dane, which accumulates more than five percentage points in a single year, the National Government may authorize, prior to of the Conpes an extra extra increment ".

ARTICLE 7o. Amendment of Article 10 of Law 56 of 1985. Article 10 of Law 56 of 1985 will be as follows:

Readjustment of the lease fee. Every twelve (12) months of performance of the contract at the same price, the lessor may increase the fee in a proportion that does not exceed the inflation target as long as the new fee does not exceed what is provided for in Article 9o., of this Law.

PARAGRAFO. If there are differences between the inflation target and the inflation rate recorded by the Dane, which accumulates more than three percentage points in a single year, the National Government may authorise an additional increase in the lease fees. which would be carried out in the subsequent renewal of the contract after that authorisation.

ARTICLE 8o. This Law repeals all those rules that are contrary to it.

The President of the Senate of the Republic,

JULIO CESAR GUERRA.

The Secretary General of the H. Senate of the Republic,

PEDRO PUMAREJO VEGA.

The President of the House of Representatives,

RODRIGO RIVERA SALAZAR.

The Secretary General of the House of Representatives,

DIEGO VIVAS TAFUR.

COLOMBIA-NATIONAL GOVERNMENT

Contact and post.

Dada en Santafe de Bogota, D.C., a los

Twenty-eight days of December 1995.

ERNESTO SAMPER PIZANO

The Minister of Economic Development (E.),

FABIO GIRALDO ISAZA