SUPREME DECREE No. 4666
On February 2, 2022, Supreme Decree No. 4666, was passed which provides the scope and percentage of the net profits of the 2021 period that Multiple Banks and SME Banks must allocate to fulfilling the social function of financial services.
PERCENTAGE OF NET PROFITS FOR SOCIAL FUNCTION.
- The Multiple Banks and SME Banks, in compliance with their social function, as provided under Article 115 of the Financial Services Law 393, dated August 21, 2013, must allocate six percent (6%) of Net Profits of the 2021 period, for the purpose that will be determined by the Ministry of Economy and Public Finance, through a Ministerial Resolution, providing the mechanisms, destination, instruments and all the characteristics that are needed for its implementation. The aforementioned Financial Intermediation Entities must comply with this provision without prejudice to the programs of a social nature that they execute.
- The amount of net profits corresponding to the percentage provided above, shall be determined based on the Financial Statements of the 2021 period with an external audit, filed with the Financial System Supervisory Authority (“ASFI”).
TRANSFER OF RESOURCES.
Multiple Banks and SME Banks, within a maximum period of thirty (30) business days from the date on which the Shareholders’ Meeting is held to approve the destination of the profits, will definitively and irrevocably transfer the amounts resulting from apply the percentage provided under Paragraph I of Article 3 above, within the framework of the provisions of the Ministerial Resolution and specific Regulation.
In its second additional provision, Paragraph I of Article 6 of Supreme Decree 2137, dated October 9, 2014, amended by Article 4 of Supreme Decree 2449, dated July 15, 2015, and Single Additional Provision of the Supreme Decree 4131, dated January 9, 2020, with the following text:
- “I. The Social Housing Loan Guarantee Fund may grant credit risk coverage up to twenty percent (20%) of the social housing loan when the borrower does not have their own contribution and the financing, covers the total value of the purchase of housing purpose of the credit operation, or another purpose included in the concept of social housing, in accordance with the provisions of Supreme Decree 1842, dated December 18, 2013 and Supreme Decree 2055, dated July 9, 2014. Guarantees may be granted for lower amounts than said percentage if there is a borrower’s own contribution in the financing structure of social housing, in such case the sum of the own contribution and the guarantee of the Fund, may not exceed twenty percent (20%) of the purchase value of the affordable housing or other purpose included in the concept of affordable housing.”
Sergio Dávila
C.R. & F. ROJAS ABOGADOS
This article does not constitute an analysis, it is a brief comment on the current legal norm in Bolivia.
