Industries hail new director, but slam State-owned bank “cronyism”

Santo Domingo.- The president of the Herrera and Santo Domingo industries grouped in the AEIH on Sunday demanded that the State-owned Reservas bank be transformed into a true instrument for national development, taking advantage of designation of Enrique Ramirez Paniagua, which he describes as a recognized banking professional.

Victor Castro also demanded the bank’s reorganization "to eliminate questionable practices such as the issuing of certain bonds and financial triangulations disguised as factoring, “which are nothing more than the creation of public debt in a disguised manner."

He called on the Banks Superintendence to assume its oversight with the same rigor applied to the other banks, demanding strict compliance with standards and best practices. “We don’t understand where that monitoring had been when Reservas transfers more than RD$3.0 billion in dividends to the Government, or 140% of its profits of 2012, which was strongly criticized by the ratings firm Moody’s, because it significantly affects the organization’s capitalization."

Castro said he hails president Danilo Medina’s appointment of Ramirez, who in his view has vast experience, noting that the next step should be the complete professionalization of its board. “With honorable exceptions, in the selection of Reservas’s board members -in whose hands are placed important decision-making for that bank’s future – has prevailed cronyism, which has sometimes led to the awarding of people, some of whom are unable to interpret a financial statement.”

In a surprising move last week, Medina named Ramirez to replace Vicente Bengoa.