The big story today is that the Central Bank of the Dominican Republic has taken over the day-to-day operations of the Banco Intercontinental. The Monetary Board of the Central Bank annulled the decree that would have allowed Banco de Progreso to acquire 90% of the shares of Baninter and merge the two banks. The Central Bank announced that it will guarantee the deposits in the Baninter and make interest payments. This decision was made by the Monetary Board in a special session that lasted past midnight. The press was informed that after processing the reports and the analyses that were part of the merger process, it was decided to annul the resolution dated 24 March 2003, which had declared there were no objections to the acquisition of 90% of the shares of Banco Intercontintental by Banco Progreso ? an procedure that would have joined the two banks. Baninter?s administration will be overseen by a committee of bankers to be named by the Central Bank.
This is the second time that the Central Bank has assumed the operations of the bank that was previously known as Banco del Comercio. The most recent takeover by the Central Bank means that Dominican taxpayers will pick up the tab for the losses attributed to a reported mismanagement of the bank.