The government of Venezuela has paid more than $356 million to 235,364 account-holders of the seized Banco Federal, representing 71 percent out of the almost $500 million of the guaranteed deposits to be paid.

The information was stated on Thursday by the State Minister of Public Banking Humberto Ortega Díaz, during an interview broadcast by the state-run TV station Venezolana de Televisión.

Banco Federal was seized by Venezuela’s National Superintendence of Banks and Other Financial Institutions (Sudeban) on June 14 due to financial insolvency caused by irregular management by the bank’s Board of Directors.

On June 25, the government of Venezuela started the payment process for account-holders who had deposits in the bank through 3,025 branches of the state-owned Bank of Venezuela and 12 private banks.

On August 11, Venezuelan authorities announced the bank’s liquidation to cover the total amount of the deposits with a sale of the assets.

At the time of the seizure, authorities determined a passive loss of over $1 billion.

Banco Federal had 560,000 account-holders whose guaranteed deposits were worth over $498 million.

AVN / Press Office – Venezuelan Embassy to the U.S. / September 2, 2010