As reported in El Nacional newspaper, Father Jose Luis Aleman criticized the government for coming to the rescue of banks that have gone bankrupt because of bad management. He said that the government should let these fail and then force these to sell their assets and refund depositors. He said that the government?s practice of rescuing the banks with taxpayer money, helping them to recover, and then allow other banks to buy them, is not correct. He criticized the Central Bank discount and cash advance transactions with banks confronting liquidity problems. He said while this situation occurred in the past, the difference today is that because the tourism, free zone export sectors and remittances are not performing as vigorously as in the past.
?For the past five years development has been financed with dollars that are either deposits or loans from foreign banks to local banks,? he said, explaining this is creating a major predicament for the country. He said the present exchange market problems are caused because those who have dollars are either retaining these, not injecting them into the market, or are depositing these abroad because of the lack of confidence in the Mejia government.
