BanInter Certificates

Linda Stapleton

Linda Stapleton

Well-known member
Jun 3, 2003
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I'm not sure if this is the right Forum, but please bear with me. I'm in the middle of this BanInter fiasco. So far I've closed my BanInter Certificate and am still waiting to be issued with my new Banco Central Certificate. I've applied because I was told this was the only way I would eventually be able to recoup my capital. I've now been waiting two weeks (which I know in this country is nothing), still have no idea when or if the new certificate will be issued, and am told that I won't receive any interest for the interim period, although the bank have my money. As I have read that BanInter is due to be dissolved this coming week, presumably there will be no where to go except Santo Domingo to chase this up. I rely on this interest to live.

Additionally, when I applied for the new certificate, the paper I signed specified a duration of 90 days before I could access my capital. That has now been changed to one year, without any prior consultation and without my signing a new document. BanInter have also refused to give me a photocopy of this document claiming that it is against bank policy to allow copies of "internal documents" to be removed. It was all I could do to be allowed to look at it.

I know we're dealing with the Central Bank and they are probably a law unto themselves, but is what they are doing legal?
 
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Fabio J. Guzman

DR1 Expert
Jan 1, 2002
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www.drlawyer.com
The alternatives are worse.

The Central Bank, without having to, has assumed the obligation to pay everybody in full, including for deposits in the Baninter offshore bank which were not under its jurisdiction. The reasons for doing this are beyond the scope of this forum.

The standard procedure would have been to liquidate the bank, sell its assets, pay the outstanding debts and divide whatever was left among the depositors on a pro-rata basis; in other words, going through a bankruptcy process. Dominican bankruptcy law is archaic, messy and complicated. Just ask the unfortunate depositors in the bankrupt banks of the early 1990's.
 
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Linda Stapleton

Linda Stapleton

Well-known member
Jun 3, 2003
633
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48
Thank you for your reply. I did realise that the Central Bank has taken on more responsibility than it was obliged to and also that this has terrible implications for the country. So I guess I just have to be grateful for what they are doing and hope that the whole process doesn't take so long that I'm forced to leave the country (that would be the absolutely last resort as I love living here). I'm still looking for a job, if anyone knows of anything in Cabarete or Sosua, preferably.

Thanks.
 
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Peter & Alex

Bronze
May 3, 2003
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At least someone is thinking....

Linda,
I realise that the Baninter certificate thing is a bitch and that Central Bank have moved the goal posts regarding the length of time your money is/will be tied to them for, and that they are taking an inordinately long time to do the transfer thingy ..... but.... someone somewhere is actually thinking of those poor investors who got caught.
1. Central Bank did not have to take over the certificates as other threads have pointed out, so count us lucky for the moment. They could have simply liquidated the bank and closed the doors!!
2. The frustration and time factors/delays will however bring you in 26% interest once transfer takes place, and that's more than you were getting with Baninter! (Transfer times 4,5,6-8 weeks I hear)? And weren't we all a little greedy in opting for Baninter's high rates in the first place? And we didn't all listen to those other posters in the first place - the warning signs were up a long time ago!
3. Why did you not avail yourself of the transfer offer of cashing in RD$25,000 of your certificate value to tide you over the expected transfer delays? Or did no-one tell you about this?
4. Central bank is, we hear, snowed under in a blizzard of applications for transfer of certificates, hence the delay. However, this could of course be another little tricky-do to make someone, not you and us, loads of interest dosh on investors money without paying out any to the certificate holders for the period covering the transfer? We'll give them the benefit of the doubt but no-one said they were stupid!

Anyway, chin up - it's paradise with bugs but we still love it all the same.
Peter & Alex
 
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