Private financial institutions to pay more into deposit guarantee fund than public counterparts

- Tuesday, February 2, 2010

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Venezuelan banks, savings & loan entities and other financial institutions will have to increase their contributions to deposit guarantee fund Fogade, with private lenders paying more than state-run institutions as of the second half of 2010, the economy and finance ministry said on its website, citing a publication in the official gazette.

All financial institutions owe 0.50% of their total public deposits as of end-2009, to be paid in six monthly installments until mid-year.

From then on, each six months public institutions will owe 0.50% of their total deposits at the beginning of the period, while the rate for private sector lenders will increase to 0.75%.

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The previous rate was 0.25% of deposits each six months for all financial institutions.

Fogade's minimum guarantee was increased to 30,000 bolívares (US$6,977 at the rate of 4.30 bolívares) from the previous 10,000 bolívares in December of last year.

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