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Argentine courts declare Banco Finansur bankrupt

Argentine courts have started official bankruptcy proceedings for troubled lender Banco Finansur SA, La Nación reported.

The move follows a decision by regulators to revoke its banking license, ordering a restructuring process and a deal that will see Banco de Galicia y Buenos Aires SA assume some of the troubled lender's assets and liabilities.

Under an agreement, Banco Galicia will assume the responsibility of Banco Finansur's operations, including the management of its eight branches, as well as responsibility over its customers and staff, the central bank said March 8.

Banco Finansur's demise is tied to a corruption and tax evasion investigation into one of its owners, Cristóbal López.