Colombian banking entities will no longer have to report before the Superintendency of Banking any interbanking loan operations they perform, unless such loans exceed over 7% of the assets of the banking entity performing the operation. This will definitely ease the requisites to be complied with by these entities, for the performance of repurchasing operations.

On the other hand, ABN AMRO BANK COLOMBIA, a 100% wholly owned subsidiary of ABN AMRO HOLDING B.V. of Holland was recently approved by Colombian Credit Rating Companies, to be registered by the Superintendency of Securities (Superintendencia de Valores) before the National Registry of Securities and Intermediaries (Registro Nacional de Valores e Intermediarios). In this sense, the banking institution will now be able to register its securities in Colombian stock exchanges for public offerings.

Finally, the Banks working in Colombia must remember that the Colombian government through the Ministry of Communications developed an Action Plan to prevent the year 2000 computer problem which has to be implemented in all public offices and agencies by December 31 1998. The Banking Superintendency ( Circular Externa 048/97 ) also established last year a control plan to prevent technical failures that will include control visits to banking and financial institutions in the year 1999 and the Securities Superintendency (Circular Externa 03/98) established a similar plan with the companies under its supervision.

Prepared by Julian Santos and Juan Pablo Castellanos from Gomez Pinzon & Asociados, Bogota, Colombia.

The content of this article is intended to provide a general guide but specialist advice should be sought about your specific circumstances.

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