Hugo Chavez threatens to expropriate BBVA-owned bank
During a televised speech, Chavez called the president of Banco Provincial and publicly accuse him of refusing to offer loans. He raised the possibility of seizing control of the bank.
President Hugo Chavez threatened to expropriate a Spanish-owned bank on Wednesday, arguing that its managers have refused to grant loans to cash-strapped Venezuelans seeking to purchase homes amid a nationwide housing deficit.
During a televised speech, Chavez called the president of Banco Provincial and publicly accuse him of refusing to offer loans. He raised the possibility of seizing control of the bank.
Banco Provincial belongs to Spanish bank Banco Santander SA and Basque bank Banco Bilbao Vizcaya Argentaria SA.
In a statement released following Chavez’s speech, Banco Provincial denied the bank has turned its back on clients seeking loans.
Last year, the bank granted loans to 3,256 families seeking to buy homes, financed the construction of 31 residential complexes and cooperated with the state-run National Housing Bank, approving over 1,600 requests for housing-related loans, it said.
“We reiterate our commitment to stay in the country and provide support for the progress of Venezuelan society,” the statement added.
Chavez has repeatedly warned he is willing to nationalize any bank that refuses to finance housing projects promoted by his government.
The president’s warnings directed at private banks have increased in recent months as his government struggles with a housing shortage that has been exacerbated by the affects of floods and mudslides that left thousands of Venezuelans homeless last year.
Chavez nationalized banks and brokerage firms from 2009 through 2010, bringing 30 percent of the banking sector under state control.
His government acquired Banco de Venezuela, the country’s fourth largest bank, in 2009 for just over $1 billion.
During his speech, Chavez also called Attorney General Luisa Ortega Diaz and asked her to investigate complaints involving Banco Provincial.
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