Capítulo VI. Politica inversionista

The Institute must formulate each year its investment plans and coordinate them, as well as its investment policy in general, with:

a). The activities of the Bank of Guatemala, on a constant basis, in order to collaborate with it in the creation and maintenance of the monetary, exchange and credit conditions most favorable to the orderly development of the national economy; and,

b). The activities of the private insurance companies, property of the State or of private individuals, at least every year, with the purpose that all the insurance systems complement and stimulate each other reciprocally.

The investment plans of the Institute must comprise separate chapters relating:

a). To the amount of the funds destined to the construction of hospitals or to carrying out other analogous projects that are related in an immediate and direct mode with the creation, maintenance or development of the services that, in accordance with the purposes of this law, it must grant to its insured persons;

b). To the amount of the funds destined to capitalize its obligations. This chapter must be formulated or, as the case may be, modified by common agreement with the Monetary Board of the Bank of Guatemala; and,

c). To the other points that the regulation indicates.

The amount of all these classes of funds must be determined by the Institute, in accordance with its technical rules, class and extent of the risks that it has assumed, actuarial forecasts, needs and financial possibilities and, in the case of subsection a), must be strictly limited to the sums destined to fulfill the respective purpose.

The funds destined to capitalize obligations must be invested in accordance with the following rules:

a). They must always be placed under the best conditions of security, return and liquidity, and only in equality of circumstances must preference be given to the investment that at the same time contributes to fulfilling purposes of a social character;

b). Operations for purposes of speculation, of any nature, may not be made;

c). Direct loans may not be granted to any of the three Branches of the State or to the municipalities.

It is understood that this prohibition does not refer to the state or municipal institutions that are autonomous or that have their own income and patrimony, provided that in either case the Monetary Board of the Bank of Guatemala advises the operation in question;

d). Investments may be made in securities or instruments issued or guaranteed by the State, by the municipalities or by other institutions or bodies, provided that they are considered first-class securities or instruments by the securities regulation fund; and,

e). The others that the regulation determines.