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Balboa Bank & Trust’s dilemma: sale or bankruptcy?

Since the entity was included on the Clinton List by the US Department of the Treasury for being linked to businessman Nidal Waked, accused of money laundering, the bank has been going under
  • File

PANAMA CITY .- The board of directors and shareholders of the Panamanian bank Balboa Bank & Trust are facing a difficult dilemma without seeing any way to resolve it.

Since the entity was included on the Clinton List by the US Department of the Treasury for being linked to businessman Nidal Waked, accused of money laundering, the bank has been going under.

The shareholders’ red flags were raised after the last license enabling the bank to engage in commercial, financial or service transactions with US companies and citizens expired on April 7 this year.

This measure pushes for an immediate sale or forced liquidation of the bank since the US authorities denied the extension of this license to operate.

However, this sales process has become quite complex. Despite the bank’s efforts to motivate the interest of several buyers, no one wants to inherit the problems between the bank and the US Department of State.

According to other Panamanian media, the only offer for the bank's purchase is not enough to cover $ 80 million in deposits, $ 50 million in shareholders’ investments and it is considered a loss of $ 130 million.

Investors have expressed their concern since the situation raises more questions rather than proposing solutions. Also, they have requested President Juan Carlos Varela’s support since they feel little endorsed by the authorities who, by constitutional right, must protect the lives, honor and assets of Panamanians.

If the solution of the Balboa Bank & Trust’s situation is close, it would not be in satisfactory terms.

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