S&L process finished

[NewsWhore]

Banks Superintendent Rafael Camilo says that the liquidation of the Asociacion Central de Ahorros y Prestamos is complete and that depositors have received their savings. At the institution, 2% of depositors with more than RD$500,000 were responsible for 96.6% of the deposits (RD$1.26 billion). The liquidation began with the 3,502 people with savings of less than RD$500,000, or a total of RD$28.6 million. Camilo clarified that no director from the savings and loans entity would be going to jail because they found that fraud was not committed against anyone. He said that it was just a case of bad management of bank funds and policies. Camilo says that payments were made with plots of land that the S&L owned. This is the case of the BanReservas, which received payment for a loan to the S&L with the transfer of land valued at RD$600 million. The only problem with that particular case is that the land was owned by the State Sugar Council (CEA) that had sold the property to Paulino Hernandez, Constructora Global, Ingenieros y Arquitectos Dominicanos y Constructora Sumo, companies with executives with close ties to the board of the savings and loan institution. The entities had only paid RD$78 million for the state land. Camilo says he doesn't know who will pay the remaining debt on the land. Camilo is in talks with CEA to find a solution.
Camilo announced that the three leading savings and loans organizations of the country, La Nacional, Popular and Cibao de Ahorros y Prestamos could take over the operation of four provincial savings and loans banks that do not meet the new banking regulations.

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