Supreme Decree No. 24000 (on Private Financial Funds)

Bolivia

(enacted in 1995)

Supreme Decree No. 24000 of 1995 relates to the creation and establishment of Private Financial Funds (PFFs) in Bolivia. The decree details their requirements for registration, licensing and operation. The decree includes fifteen articles that make the following points:

  • PPFs are non-banking financial entities;
  • Their aim is to channel resources to small and micro-borrowers carrying out activities in both urban and rural areas;
  • PPFs may operate at the national level;
  • They will adapt their operations to the laws that govern the banks in Bolivia;
  • They will be set up as stock corporations and must have a certain minimum capital;
  • The firm under which they trade may not have the word “bank”;
  • In order to obtain an operating license, they must meet the requirements of banking laws;
  • They must recruit qualified professionals;
  • PPFs may grant loans secured by articles of personal property, such as jewelry and other valuable objects;
  • They may:
    • Take deposits;
    • Issue obligations;
    • Contract obligations with domestic and foreign banks;
    • Extend loans secured by joint and several guarantees;
    • Issue guarantee bonds;
    • Carry out transfers and issue bank drafts;
    • Perform foreign exchange operations;
    • Buy, hold and sell certificates of deposit;
    • Purchase real estate for business purposes;
    • Enter into leasing agreements;
    • Carry out collection operations; and
  • They may not lend to individual or groups of borrowers for more than 3% of their equity.