06 July 2010
Venezuelan Government has payed off BsF 1.7 billion to 726,000 savers of intervened banks
Caracas, 02 Jul. AVN.- The total savers from the 11 banks intervened between late 2009 and early 2010, to whom the Bolivarian Government of Venezuela has payed off their deposits, adds up to 726 thousand citizens who have received 1.7 billion bolivares fuertes.
The information was given by the president of the Bolivarian Republic of Venezuela, Hugo Chavez, during an event to return savings to savers of the recently intervened bank Banco Federal.
The President expressed that by the end of 2009, the Venezuelan Government was compelled to take measures of intervention on six banks that were subsequently liquidated. Five of these banks were merged with state-run entities.
Chavez explained that state-run banks belong to the people to support the needy, not to earn money neither to gain capital, but to grant a supportive and united loan services.
As examples, he quoted the Banco de La Mujer (or Women"s Bank), which he described as an entity to provide training, union and support, as well as he quoted the Banco Bicentenario and the Banco de Venezuela.
President Chavez emphasized that by means of the Bank Deposit Guarantee and Protection Fund (Fogade) has answered on time and efficiently to savers.
However, he recognized that when the Bolivarian Revolution took office in Venezuela, Fogade had no strength. It met just 4 thousand bolivares fuertes of savers" funds (US$ 1538). “Then, we increased it, first, to BsF 10,000 and subsequently up to Bsf 30,000 (US$ 11,538). So, we are guaranteeing the great majority of their deposits and we are fulfilling it. That is not said by private media outlets, television channels and newspapers, especially those managed by the bourgeoisie.”
The Venezuelan President expressed that the situation is currently repeating in the case of the intervened bank Banco Federal, whose owners used those private media outlets to deceive the population and they now fled with Bsf 1.7 billion that belonged to savers who trusted in them.
Payment to Banco Federal"s savers
On Friday Jul. 02nd began nationwide the second phase to pay off the deposits of the Banco Federal"s savers, a process that began last Friday Jun. 25th.
The process will continue being carried out in the different banking entities nationwide.
During the first stage of the process to pay off the guarantee funds, directed to people older than 55 years, Fogade paid off 139 million bolivares to 16,368 savers of the intervened Banco Federal.
Banco Federal"s case
Edgar Hernández Behrens, head of the Superintendency of Banks and other Financial Institutions (Sudeban), informed on June 14 the intervention behind doors of Banco Federal because the institution failed to fulfill the General Law on Banks and the measures dictated by Sudeban.
Among the irregularities committed by the Banco Federal there highlights the fact that current liabilities were higher than net worth, which caused a currency mismatch of 2.52 billion bolivares and that it failed to have a solvency deficit of minimum funding of the legal reserves required by Venezuela"s Central Bank (BCV, for Spanish).
Besides, the financial entity failed to fulfill the minimum percentages of 12% for net worth and 8% for contingency operations, which indicate the bank"s solvency deficit.