In the four weeks since the beginning of the payment process to account holders of the seized Banco Federal, the Venezuelan government has refunded more than 50 percent of the resources through Venezuela’s Fund of Deposit Guarantees and Banking Protection (FOGADE). The government has paid 1,155 million bolivares ($268 billion) out of the estimated 2,145 million ($418 billion).
The statements were made by the Minister of State for the Public Bank, Humberto Ortega Díaz, and the president of FOGADE, David Alastre, during an interview in the state-owned station VTV.
Ortega Díaz remarked on the excellent and rapid service that the account holders have received. Banco Federal was taken over by authorities due to administrative irregularities linked to its directors.
The Venezuelan minister said that during the first week of the payment process, 15,000 people went to the bank to begin the process, and in the last week the figure lowered to 4,000 account-holders.
Ortega Díaz said that those account holders who had high amounts of money in the seized bank received the guarantee payment established by the law, 30,000 bolivares (about $7,000). Whether or not the bank is rehabilitated, once it is opened, clients must go to request the rest.
If the bank is liquidated, Article 344 of the General Law of Banks would apply, which establishes the ranking order for the distribution of the resources of the institution.
“The most important thing is to wait for the definitive report of the auditors designated by the Fund of Deposit Guarantees and Banking Protection (FOGADE), regarding the destination of the bank in order to now exactly what the account holders have to do,” added Ortega Díaz.
For his part, Alastre said that more than 200 companies related to Nelson Mezerhane, owner of the Banco Federal, have been found. Alastre said that those companies will be part of the liquids assets, which will allow for the payment of debts, in case that the auditors decided to liquidate the bank.
The president of Fogade remarked the success of this process of guarantee payments due to an excellent institutional coordination among the Venezuelan Superintendence of Banks, the Bank of Venezuela and Fogade, together with other 12 financial institutions.
Last June 25, the payment process to account holders of the Banco Federal started, through a network of 3,025 banks.
AVN/ Press and Communications Office of the Embassy of the Bolivarian Republic of Venezuela in the U.S./ June 27, 2010
