Caribbean & Central America - October 2006 (ISSN 1741-4458)

José Manuel Hernández Peguero, the attorney general for the Distrito Nacional, said that he wanted to see more documents from the central bank to see whether the law had been broken by the central bank, and possibly officials of the former government, in the rescue of Banco Intercontinental (Baninter) in 2003. The accusation is that central bank officials were too quick to come to the aid of Baninter when it ran into trouble and did not wait for the bank to be formally liquidated. By doing this, the allegation runs, some of those who broke the bank were able to get their money out and leave the taxpayer to pick up the bill. The central bank has already produced a detailed audit of what it did during the banking crisis when three banks, Baninter; Banco Nacional de Crédito and Múltiple Mercantil, failed. The total assets of these three banks were equivalent to 16% of the country's GDP.

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