Waked owned bank heading for sale
THE WAKED group Balboa Bank & Trust is heading for the selling block after the Friday’ July 1 decision of The Superintendency of Banks to order its reorganization
The reorganization will be effective from July 4 at 2:30 p.m., said the entity.
“The reorganization of the bank seeks to fulfill three basic objectives: protect the best interests of depositors, minimize any loss of value of the bank that is to the detriment of depositors and reduce any adverse impact on the banking system,” said the agency.
According to the superintendency, the decision to reorganize the bank will allow alternatives to “seek to give greater security to depositors and creditors of Balboa Bank & Trust Corp.” It will also allow them quicker access to their funds.
“This can be done by selling to a new operator,” it added.
Ariel Antonio Sanmartin Mendez was appointed as the reorganizer, which includes developing a plan that will detail the different phases and stages that must be met with the best selected alternative.
“This will be a transparent process, so that depositors, creditors and other interested parties can be secure in how it is being handled,” the superintendency said.
Control of the bank’s administrative and operational functions were taken over by the superintendency in May, when the bank was placed on a sanctions list by the U.S. Treasury Department. That move was made because of its ties to the Waked family, who faced allegations that they laundered money for drug traffickers.
The actions by the Treasury Department meant the bank could not interact with any U.S. entities, which hampered its ability to continue to operate. If the bank is sold, it could resume normal operations.
