Despite a takeover by the government, Icelandic bank Glitnir will hold to its plans to open representative offices in Santiago and Lima, the bank's managing director for Asia and Latin America Jón Garðar Guðmundsson told BNamericas.
After Glitner's short-term funding position declined precipitously, the bank announced on Monday (Sep 29) that it had agreed to a 600mn euro (US$844mn) deal with the government, giving it 75% stake in the bank, with the goal of shoring up the bank's liquidity and capital ratios.
"The new shareholder will not change the strategy of the bank," Guðmundsson said. "Glitnir bank is running cost effective operations in Chile and Peru, which are very important for the global niche strategy focusing on seafood and geothermal energy."
In August, the bank announced plans to apply to open representative offices in both countries, focusing on investment banking, with plans to open business in Argentina and Uruguay through its planned Santiago office. Glitnir also expressed interest in entering Brazil.
Glitnir has been doing business in Chile and Peru for over five years through its offices in Iceland, Norway and the US, and will continue servicing Central America and Mexico from its offices in New York and Iceland, the bank said at that time.
"This change will not in any way affect our customers," the executive said of the effects of the takeover on this existing business.
The government has asked Glitnir CEO Lárus Welding to continue heading the bank after it takes control.
