NewsWhore
03-24-2011, 04:50 PM
Writing in today's Diario Libre, financial analyst Alejandro Fernandez Whipple focuses on how the governmental Banco Nacional de Fomento a la Vivienda y la Produccion (BNV) has become the government's silent financier in recent years. He backs the proposal by Ligia Bonetti of the DR Association of Industries to convert the government's commercial bank, Banco de Reservas into a new bank to support production sectors, but takes it a step further. He proposes closing the BNV.
He writes that the BNV in the hands of administrators Matos Berrido, Geronimo and Antun Batlle "has dedicated itself to issue debt and finance among other agents of the so-called productive sectors, the government itself."
He mentions that over the past five years, the BNV has issued RD$10.3 billion in paper issued based on the pension funds, debt that is rated A+.
"Since that paper began being issued in 2008, there are more the funds that the BNV has placed in government bonds than what used to be lent to the real productive sectors," he writes. He adds that 51% (or RD$6.5 billion) of the BNV's financial assets are placed in the Central Bank and the Ministry of Hacienda, and comments that ironically "many jobs and goods are produced there".
"What is most pathetic is that of the loans made by the BNV, RD$200 million are for consumer goods, not real production. He also highlights the poor quality of the loan portfolio of the BNV, mentioning that 14% of the portfolio is already involved in court cases. The Banco de Reservas has 5.8% of its portfolio in judiciary, while private banking has 3%.
Fernandez points out that the BNV has 466 employees in a single office, and annual administrative expenditures of RD$850 million.
www.diariolibre.com/noticias_det.php?id=284257 (http://www.diariolibre.com/noticias_det.php?id=284257)
More... (http://www.dr1.com/index.html#7)
He writes that the BNV in the hands of administrators Matos Berrido, Geronimo and Antun Batlle "has dedicated itself to issue debt and finance among other agents of the so-called productive sectors, the government itself."
He mentions that over the past five years, the BNV has issued RD$10.3 billion in paper issued based on the pension funds, debt that is rated A+.
"Since that paper began being issued in 2008, there are more the funds that the BNV has placed in government bonds than what used to be lent to the real productive sectors," he writes. He adds that 51% (or RD$6.5 billion) of the BNV's financial assets are placed in the Central Bank and the Ministry of Hacienda, and comments that ironically "many jobs and goods are produced there".
"What is most pathetic is that of the loans made by the BNV, RD$200 million are for consumer goods, not real production. He also highlights the poor quality of the loan portfolio of the BNV, mentioning that 14% of the portfolio is already involved in court cases. The Banco de Reservas has 5.8% of its portfolio in judiciary, while private banking has 3%.
Fernandez points out that the BNV has 466 employees in a single office, and annual administrative expenditures of RD$850 million.
www.diariolibre.com/noticias_det.php?id=284257 (http://www.diariolibre.com/noticias_det.php?id=284257)
More... (http://www.dr1.com/index.html#7)