Banco Reformador to acquire Banco SCI |
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Published
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Mon, 05 Feb 2007 21:54
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GUATEMALA CITY (AFX) - Banco Reformador de Guatemala announced Monday that it would buy Banco SCI, marking the country's eighth bank merger in the past four months.Reformador president Miguel Aguirre said the merger was necessary to stay competitive: 'The arrival of large foreign banks (to Guatemala) has forced us to become stronger and increase our financial services,' he said.Once the deal is approved by Guatemala's Monetary Commission, Reformador will have US$1.2 billion (euro0.93 billion) in assets. Aguirre declined to say how much the bank is paying for SCI but estimates in the financial sector have put the price at around US$17 million (euro13.15 million).In October, Reformador and two other banks bought out Banco del Cafe after it went bankrupt because of bad loans. A string of Guatemalan banks and financial institutions have closed or been bought out since then amid fears of financial crisis.Guatemala's Monetary Commission said the closures were isolated cases and the country's banking system is in good shape.And in December, Citigroup Inc. bought Grupo Cuscatlan, which operates banking and other financial services in Central America, for US$1.5 billion (euro1.16 billion), giving the U.S. financial giant a foothold in the region. El Salvador-based Cuscatlan also operates in Guatemala, Costa Rica, Honduras and Panama.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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