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Bancrédito still selling loan portfolio under restructuring plan

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Bancrédito still selling loan portfolio under restructuring plan

Troubled Costa Rican state-run Banco Crédito Agrícola de Cartago, or Bancrédito, said it has sold 57.7% of its loan portfolio denominated in Costa Rican colones and 48.1% of it U.S. dollar portfolio, as of Nov. 24.

The bank also said it has managed to cancel 86.13% of its debt securities in colones in circulation as of May 31 this year and 69.24% of the same in dollars, according to a Nov. 27 filing.

The move comes as the financially burdened bank complies with a restructuring plan to unwind its financial intermediation business and transform into a development bank.

Costa Rica's government announced in May it would speed up its plans of transforming Bancrédito while ceasing its intermediation activities before the end of 2017.

The state-run entity will focus its future operations on trusts, tax collection, social assistance programs and other services to public and private institutions.

As of July, Bancrédito had reportedly sold around 40% of its loan portfolio.

As of Nov. 24, US$1 was equivalent to 565.39 Costa Rican colones.