• ENGLISH
  • ESPAÑOL
facebook
twitter
  • National>Entertainment
  • National>Local Economics
  • National>Local Politics
  • National>Society
  • National>Sports
BREAKING NEWS
Remote work continues in the public sector of the Executive until March 14
A bacterium protects the lupine from its main threat and would increase grain production in Ecuador
Despite pandemic, air transport of flowers was the second best in eight years
Germany, Ecuador and Ghana concerned about marine plastic pollution
Minister of Government assures that possible links between gangs involved in crimes in Ecuador’s prisons with Mexican and Colombian organizations are being investigated
The judge does not revoke the preventive detention that weighs on Jacobo Bucaram Pulley, but due to a health problem he ordered his house arrest in Guayaquil
Judge dictates preventive detention against three of the 4 detainees in the Isspol case
Low in oil production in Ecuador makes it difficult to take advantage of the so-called ‘super cycle’ of crude prices
Rafael Correa would be behind the riots in the prisons of Ecuador
‘Jorge Chérrez’s companies owe $ 20 million in interest to Isspol’

Fomento Bank has accumulated millions in losses

Posted On 21 May 2013
Rafael Correa and the BNF

Rafael Correa and the BNF losses

Losses totaling $ 117 million according to the firm Bank Watch Ratings that published the latest risk rating of the National Development Bank (BNF, for its Spanish acronym) in December 2012: BBB-, which means that “this institution has good credit. Although some minor obstacles are obvious, these are not serious and / or are perfectly manageable in a short term.”

“If that bank keeps going the same way I am seriously considering closing it and find an alternative,” said the Ecuadorian President Rafael Correa, regarding the BNF, in late April, for the slow attention to beneficiaries of Human Development Credit and after finding the agricultural machinery stored and unused in warehouses of that financial institution. Correa even mentioned that if he closes the BNF the loans could be delivered through a second-tier banks.

The BNF has maintained its rating since December 2008, according to the analysis of the rating firm, but there is evidence that there are problems that are not overcome and  getting worse.

By the end of the year 2012 the bank registered a gain of $ 495 000, but has an accumulated balance of losses for more than a decade, reaching the $ 117 million.

The portfolio, until  December 2012, totals $ 858 million. In relation to September 2012, in December of that year, the gross productive portfolio declined at 1.9% per year, the portfolio at risk grew  16% annually and the late payments rose from 12.5% to 14.2 %.

The analysis also highlights that although the legislation gives administrative and financial autonomy to the BNF, there is political interference in the decision-making process.

About the Author
  • google-share
Previous Story

Peace negotiations between FARC and Colombia are polarized

Next Story

Pegaso Satellite could crash

SEARCH

LATEST NEWS

Remote work continues in the public sector of the Executive until March 14

Posted On 01 Mar 2021

A bacterium protects the lupine from its main threat and would increase grain production in Ecuador

Posted On 26 Feb 2021

Despite pandemic, air transport of flowers was the second best in eight years

Posted On 26 Feb 2021
Copyright © 2010 - 2019. All Rights Reserved. EcuadorTimes.net