Failed banks’ auction to recover part of taxpayers’ US$4.0B

Santo Domingo. – The Central Bank is selling a total of more than RD$1.6 billion in real properties and the balance of the credit card debts of the failed banks Baninter, Mercantil and Bancredito, whose bankruptcies cost Dominican taxpayers nearly US$4.0 billion.

In its announcement Thursday, the Central Bank’s Baninter Administrative Liquidation Commission said it will auction 14 properties of that failed bank including buildings and commercial spaces, with total starting bids of RD$835.5 million, whereas the remaining RD$814.0 million are from Mercantil and Bancredito credit card debts.

Santo Domingo properties

Among the costliest of Baninter’s former properties nationwide figure a 30,000 square meter lot on the corner of the busy thoroughfare Luperon Av. corner San Anton St., with a RD$520.0 million starting bid.

Also on the block is a building on Lincoln Av., corner Núñez Dominguez St., in the upscale sector La Julia, whose starting bid is price RD$167.5 million and another on the corner of Maximo Gomez and San Martin avenues, with a bid of RD$100.0 million.

The Central Bank’s Assets Materialization Policies Committee (Copra) said it will manage the bidding for the Mercantile and Bancredito RD$814 million credit card debt, for which the letters and documents required in the terms of reference could be submitted until Monday, March 26.

The monetary authorities expect to conclude the auction of the credit card debt by May 7, with the signing of the transaction with the company that wins the bidding.