Government takes over struggling Banvalor on high delinquency

- Wednesday, January 5, 2011

Government takes over struggling Banvalor on high delinquency

The Venezuelan government will take over small bank Banvalor due to the extremely high delinquency of the bank's credit portfolio.

The takeover was published Wednesday in the official government newspaper La Gaceta, according to reports from local media.

According to the latest figures from bank regulator Sudeban, Banvalor had 256mn bolivars (US$60mn) in loans on its books through the end of November, with non-performing loans (NPL) rising to 83.2% of the total portfolio.

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In September 2010, the government stepped in to take over Banvalor Seguros, an insurance company in the same financial group.