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Panama extends the deadline to organize sale of Balboa Bank

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  • Thu, 04/13/2017 - 09:58
Panama extends the deadline to organize sale of Balboa Bank

PANAMA.- The Superintendency of Banks of Panama (SBP) has ordered a 30-day extension of the reorganization of the Balboa Bank & Trust in order to evaluate new alternatives to the sale of the entity, sanctioned by the United States for laundering.

The deadline for the extension, which will begin on Saturday at 2.30 pm local time (7.30 GMT), may be anticipated or extended, the Superintendency said in a statement.

The measure was dictated to evaluate the viability of new alternatives and to follow a process of negotiation of sale which is currently in progress.

The SBP also reported that they have a call option that is framed under certain conditions that would have to be accepted by Balboa Bank depositors.

Balboa Bank was intervened last May, the same day that the United States included the powerful Panamanian business group Waked on the so-called Clinton List of drug lords, along with 68 other companies of the magnates Abdul Waked and his nephew Nidal Waked, who is a Senior Executive of the financial institution.

Nidal Waked was arrested in Colombia and then extradited to the US, while his uncle, who has no relationship with the bank, has denied any commercial relationship with his nephew.

The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury issued and extended special licenses to allow reorganization.

On January 30 last, the SBP had ordered an extension of 75 days from that date for the process at the Balboa Bank & Trust.

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