The move comes after Brazil’s central bank ordered to liquidate Banco Azteca Brasil over serious violations of legal and regulatory norms, Bloomberg reported.
The Central Bank of Brazil started the process of extrajudicial liquidation of Banco Azteca’s Brazilian unit, in a bid to finalize the closure.
Owned by Mexican billionaire Ricardo Salinas Pliego, Banco Azteca offers personal loans, credit cards, as well as car loans, among other types of credit.
In addition to operations in Mexico and Brazil, Banco Azteca has presence in Panama, Guatemala, Honduras and Peru.
As of November, Banco Azteca had $2.7m in negative net assets in Brazil. It has 17 employees and one branch in the country, according to the publication.
In 2010, Banco Azteca had planned to increase the number of branches in Brazil to 38, by benefiting from a rebounding economy and growing market for its services. However, the country’s economy stagnated from 2011 through 2014.
Nearly 68% of Banco Azteca Brasil’s deposits are backed by guarantee fund FGC, a privately held institution funded by banks operating in Brazil, Reuters reported citing the central bank.
The Brazilian subsidiary’s revenues in the first nine months of 2015 accounted for approximately 0.3% of consolidated revenues.
Grupo Elektra is a Mexican financial and retail corporation that serves the mass market by providing consumer credit.
Image: In addition to operations in Mexico and Brazil, Banco Azteca has presence in Panama, Guatemala, Honduras and Peru. Photo: courtesy of Carlosjca / Wikimedia Commons.
