Venezuela: Reinstatement of three banks for USD 43 billion

[ChangoLoa]

My observation: 43 billion $ in Venezuela = around 3 trillion $ in the US; I wonder how would Americans react if their state had lost 3,000 billion $ saving banks which operated with 35% to 55% funds coming from state agencies' deposits.

The Venezuelan government took on losses estimated at USD 43.13 billion to reinstate seized banks Bolívar, Confederado and Central Banco Universal, which lost more than two thirds of their capital stock.

Government authorities reported on Monday on the Official Gazette that by December 21st, the takeover will end and the banks will open again and join the public financial system.

As part of reinstatement of the three banks, the government took all of the Confederado stocks, accounting for USD 23.74 billion, lost during the crisis, according to a report released on Monday by the Banks Superintendence.

A similar measure was adopted with Central Banco Universal for USD 11.86 billion to reopen it.

Also, in the case of Bolívar bank, the State took on all the shares for a total of USD 7.53 billion, AFP reported.


Link
http://english.eluniversal.com/2009/12/14/en_eco_esp_reinstatement-of-thr_14A3191293.shtml

[bemildred]

1. Sounds sort of like TARP. nt

[ChangoLoa]

2. It does, the "T" being an euphemism in both cases...

43 billion $ is a hell of a lot of lost money for an economy like Venezuela. The equivalent of about 2.5 trillion (correction) in the US economy.

[ChangoLoa]

3. CORRECTION, this news is BS

El Universal's BS transcripted by me... my fault because I didn't find other articles concerning the issue until now. It wasn't 43 billion, but 43 MILLION (!). El Universal corrected the text.

Sorry for the misinformation.

[Braulio]

4. That's more like it.

I knew it was BS because Venezuela doesn't have the $43 billion to assume. By the way, today Venezuelan bonds have been honoured as the riskiest in the world, according to the credit defaults swap market. The risk is now above 50 % that Venezuela will default on its loans.