According to the Wall Street Journal, some 750,000 people are affected by the liquidation of two banks and the closing of two more by the government. I know that many people in Caracas are worried about the situation, they see themselves with no savings and everything they worked so hard to put aside for later is now gone.
The Venezuelan government has closed down four banks, saying authorities uncovered major financial problems after they took over the banks due to irregularities in their operations. Two of the banks, Canarias and ProVivienda, will be permanently closed and their assets auctioned off, Ali Rodriguez, the finance minister, said on Monday. “The damage caused has been so great that it has severely compromised the solvency of these institutions which therefore requires closed door intervention and their liquidation,” Rodriguez said. [Taken from aljazeera.net]
Why is the government doing this, according to the finance minister, Chavez Administration wants to clean the banking industry. Minister Rodriguez, claim that these banks were close becase “violations of solvency regulations and unexplained capital increases.
“How can I pay for my shopping, my boy’s school? How will I survive? Who will answer for my money?” said employee and depositor Fabiola Martin, among 200 people thronging the Caracas headquarters of one of the banks, Banco Canarias. [taken from reuters.com]
I know that things were really hard in Venezuela, but this has made everything worse. I see the image on the left, and I can’t help sympathizing with the desperation and frustration this woman must be experiencing right now. There is no words that can really help in times like this, but I will say to all those affected by the closing that my prayers are with you.
The Wall Street Journal has an interesting piece explaining the closing of these banks, I encourage you to read the article and make your own conclusions. Just in case the title of the article is “Caracas Shuts Banks, Sealing Insider’s Fall” you can click on the title to see the full article, but sometimes the WSJ will remove it from is edition and put it in archives, so you can search by title.
Again, I have no words to express my sadness from what has happened. Many people has spend the whole year saving their money to spend it during the holidays and now they have nothing. It is a real tragedy.
- Image: Reuters.com
- News Clip: aljaseera.net
- News Clip: wsj.com