VENEZUELA: Venezuelan government to take over three more banks

Record ID: 561792

  • Title: VENEZUELA: Venezuelan government to take over three more banks
  • Date: 5th December 2009
  • Summary: CARACAS, VENEZUELA (DECEMBER 4, 2009) (REUTERS) CUSTOMER IN CENTRAL BANCO UNIVERSAL TRYING TO WITHDRAW MONEY FROM MACHINE CLIENTS OUTSIDE THE BANK SOUNDBITE (Spanish) MIGUEL ALEJANDRO, CLIENT OF CENTRAL BANCO UNIVERSAL, SAYING: "It's unbelievable. We're going downhill because of this government. The bank has no money. Everything is a surprise. What'll happen on the 24th (Christmas Eve)? What's in store for us on December 24th?" PERSON INSIDE THE BANK BANK SECURITY CLOSING THE DOOR PEOPLE WAITING TO TRY AND ENTER THE BANK PERSON SPEAKING WITH SOMEONE FROM THE BANK
  • Embargoed: 20th December 2009 12:00
  • Keywords:
  • Topics: Finance,Domestic Politics
  • Reuters ID: LVAE344HC9SO2AOOKKFJ61QVQ3PO
  • Story Text: Venezuelan finance ministers says the government will take over more banks; customers express alarm.
    Venezuela's government is set to take over the administration of three more small private banks in order to "rehabilitate" the institutions.
    The country's finance minister, Ali Rodriguez, made the announcement on Friday (December 4).
    "The Superintendency of Banks, regarding Central Banco Universal, Banivest and Banco Real, has taken the decision to apply closed-door intervention in order to rehabilitate them"," Rodriguez said in a televised speech.
    Such closed-door interventions involve shutting banks while authorities determine whether to rescue or liquidate the institutions.
    The three banks account for about 2 percent of the country's deposits, according to Caracas-based firm Softline.
    On Monday, the government shut four other small private banks accounting for about 6 percent of the country's deposits.
    Some savers, like Miguel Alejandro, expressed outrage.
    "It's unbelievable. We're going downhill because of this government. The bank has no money. Everything is a surprise," he said. "What's in store for us on December 24th?"
    President Hugo Chavez said the government will liquidate two of the banks and transfer the other two to state hands.
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