Central Bank Governor Jos? Lois Malkum confirmed yesterday that the sale of Banco Nacional de Cr?dito (Bancr?dito) to Banco Profesional, owned by the E Le?n Jimenes group, would go through, with the Monetary Board?s endorsement of the deal expected later today. Malkum revealed that Bancr?dito had been the victim of a “wave of rumors? in an “orchestrated campaign? that caused many account holders to withdraw their money. The Central Bank has injected RD$3 billion to Bancr?dito to ease the situation.
Malkum remarked that, after careful consideration by the monetary authorities, the sale would proceed, concluding that it was the only way of avoiding another banking collapse. Malkum stressed that Bancr?dito was “a solvent entity” and that the takeover was a positive development to be carried out with transparency.
This news comes two months after the announcement that Banco del Progreso would absorb Baninter, which was followed by the revelation one month later that Baninter had collapsed as a result of an unprecedented RD$55-billion fraud.
Bancr?dito was set up in 1980 and holds around 9% of the banking market share. Business giant E Le?n Jimenes is one of the Dominican Republic?s most established companies, famous for its ownership of Presidente Beer and tobacco brands.
Tricom update
Tricom, the second largest communications service provider in the Dominican Republic, revealed yesterday that its majority shareholder, GFN Corporation, Ltd., will make an equity contribution to finance a cash payment of the exchange offer and consent solicitation made by the company. Tricom says that the exchange offer and consent solicitation is subject to the fulfillment of several conditions, including the receipt of tenders of at least 85% of the company?s outstanding US$200-million aggregate outstanding principal amount 11-3/8% Senior Notes that are due in 2004. Tricom offers local, long distance, and mobile telephone service, cable television, broadband data transmission and Internet services. Tricom is a sister company to Bancredito, the financial institution that Central Bank Governor Malkum has said will be sold to Banco Profesional.
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