Venezuela has merged three failed private banks Banco Bolivar, Banco Confederado and Central Banco Universal with a larger public sector one to launch a 367-branch Banco Bicentenario, reported Reuters.
With this the state’s stake in the banking sector has raised to approximately 25%. Banco Bicentenario is said to hold an estimated 20% of all deposits in Venezuela.
In a statement, the government said that the new bank would serve all those Venezuelans who traditionally were not granted access to the services offered by private banks.
Reportedly, since November 30, Venezuela has closed eight small banks due to various problems including solvency and questionable funds.Hugo Chavez, president of Venezuela, said that the government would take over more banks unless they reduce interest rates for low-income borrowers.
He said: “The private bankers who don’t like this are totally at liberty to take up another economic activity that suits them better, and they can give me the banks, I’ll take them.” According to him, the bank would make around $372m, and at that rate, within three years the government would make enough to pay off its purchase, reported the news agency.
