Back

Economy & Business - October 2007 (ISSN 1741-4431)

GUATEMALA: Officials smug one year on from Bancafé debacle

Officials claim that the banking system is now much stronger, a year after the collapse of the Banco del Café. Depositors in the failed bank, which was the fourth biggest in the country, have yet to recover all their money. María Antonieta de Bonilla president of the Junta Monetaría and the central bank, said that there had been a misunderstanding that depositors would recover 100% of their deposits in the failed bank. She said that the deposit guarantee agency, Fondo de Protección al Ahorro (Fopa) had only Q1.6bn (US$205m) to cover the bank's Q6.7bn in deposits. Of this Q1.1bn has been spent, but this is equivalent only to 16% of the bank's deposits. The Fopa guarantees only the first Q20,000 (US$2,500) in a bank account.

End of preview - This article contains approximately 328 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

Back

Articles in this issue