Banco de la República Transfers $1.18 Trillion Pesos in Profits to the National Government

At a meeting today, the Board of Directors approved Banco de la República’s financial statements for 2006.  Pursuant to Law 31/1992, it will transfer Col$1.18 trillion pesos in profits to the national government.  These funds will be turned over in US dollars.

Most of the Bank’s profits for 2006 originated with returns on international reserves and the increased value of investments in TES, which is uses to implement monetary policy.  The highlights include the  limited increase between 2005 and 2006 in personnel expenses (5.8%) and general expenses (4.4%).  In real terms, personnel and general expenses declined by 13.5% and 28.2%, respectively, between 2005 and 2006.  The Bank has cut its staff by 15.6% in the last six years. All of these accomplishments are the result of a continuing policy to rationalize its personnel and operating expenses.

The financial statements were authorized by the Superintendent of Financial Institutions. They are audited internationally and by the General Auditor of Banco de la República.