Costa Rican Economic Council evaluates options on Bancrédito crisis

The Economic Council met on 18 October 2016 at the Presidential Office to analyze the future of the Banco Crédito Agrícola de Cartago (Bancrédito), which requires financial assistance to avoid a financial crisis (CRHoy, 19 October). The Bank has faced financial troubles since 2003, with the entity receiving millions from the government, including around US$17.5 million in 2008 as part of a capitalization made to three state banks (La Nacion). Also from 2003 to 2006, Bancrédito was administered by a newly created fund, the Fideicomiso Nacional para el Desarrollo (Finade). With the Bank again struggling financially, the options being considered are another round of capitalization, return remaining banking system resources for development finance entities, or for a state bank to assume control of Bancrédito (CRHoy).