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LATIN AMERICA |
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Venezuela Announces Bank Liquidations
CARACAS - Venezuelan Economy and Finance Minister Ali
Rodriguez announced on Monday liquidation of
private Canarias and Providencia banks,
after irregularities found during their
placing in administration.
The supervision practiced revealed that the
damage caused was of such magnitude that
jeopardized seriously those institutions'
solvency, Rodriguez told press at the
Miraflores Palace.
According to the official, the Deposit
Guarantees and Bank Protection Fund (FOGADE)
board of directors will announce the
regulations, by virtue of which they will
proceed to protect the rights of the
workers, depositors and creditors.
FOGADE covers 97 percent of the people with
deposits at Providencia Bank and 92 percent
of those with deposits at Canarias Bank, he
said.
Rodriguez also announced that due to the
magnitude of the problems, the placing in
administration process will be carried out
now behind closed doors.
Bolivar and Confederado banks will be also
placed in administration behind closed
doors, he said.
The minister had announced on November 20
the decision of taking action against those
four banks, as a result of repeated
violations.
Non-compliance with the prohibition of
legalizing their operations without proving
the origin of their funds, lack of liquidity
and solvency, and the use of resource to
grant credits to companies related to the
group led to the initial placing in
administration, which was open then.
Rodriguez considered the actions implemented
as proper, and mentioned the existence of
current investigations to determine those
responsible for the irregularities.
President Hugo Chavez considered the
possibility to nationalize the private bank,
if irregularities persist, as those detected
at Canarias, Providencia, Bolivar, and
Confederado banks.
If they want nationalization, I do not have
any problem. I will take their banks, no
matter their sizes, he said in his Alo
President radio and television show on
Sundays, broadcast from El Maizal community,
at the boundaries between Lara and
Portuguesa states. |
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