Venezuela launches state-run bank

Venezuela launches state-run bank

Chavez showed an advertisement for the new state bank in a ceremony on Monday [AFP] Venezuela has launched a new state-run bank, combining three banks that authorities recently put under state control citing irregularities in their operations. Hugo Chavez, the country's president, inaugurated on Monday the public Bicentenario Bank that merges Confederado, Bolivar Bank, and Central Bank. The three banks were among eight banks authorities took control of in November in a scandal that prompted the arrests of several prominent bankers with links to the government. The state now controls about 25 per cent of the Venezuelan banking sector. The expanding state role comes as Chavez continues to accuse his opponents of trying to provoke panicked withdrawals from banks to harm his government. The government has been absorbing losses at some of the closed banks, including more than $43 million in losses at Bolivar, Central Bank and Confederado before regulators took over management. Five other small banks where authorities have intervened recently, remain closed: Canarias, Real, ProVivienda (BanPro), Baninvest Banca de Inversion and BaNorte.

Source: Agencies