While a final proposal is being drafted, the pending point for the actors involved is to decide what the contribution of each one will be.
The bank account is reaching the time limit before reaching a situation of inability to pay and, while still working on a solution that manages to save the finances of the institution, from the group made up of the government, the Association of Bank Employees of Uruguay (AEBU) and the Association of Private Banks (ABPU) already estimate that the costs of such a proposal will exceed the 700 million dollars.
When planning began for an alternative to rescue the bank accountthe first estimates indicated a necessary cost of 660 million dollars to stabilize the critical financial situation that still threatens to prevent the regular payment of the corresponding assets starting in the coming weeks.
In this sense, a report released by the institution indicated that the reserves at the end of 2022 were 2,428 million pesos after a year-on-year drop of 49%; and this scenario only got worse during 2023: in May, the reserves had already fallen to 1,440 million pesos. The available funds would make it possible to cover the payments until, approximately, the end of the year, without knowing what will happen to the Banking Fund, and its 18,210 active affiliates and 19,635 passive ones from 2024.
Regarding this urgency, it is also necessary to add the time that the proposal will need to be approved, once it is presented, so that the different parties that work in the search for a solution, do it against the clock —and avoiding internal conflicts, especially between the companies and the banking union. The most crucial point is What will be the contribution of each one of those involved? to reach the amount needed by the Fund.
an expensive solution
While the state banks contribute to extending the countdown for the Caja Bancaria, the government’s intention is to larrive with the final wording of the proposal by the end of the month. As reported by El Observador, the initial cost estimates were increasing over time, and the original figure of 660 million dollars It has already climbed above 700 million dollars —contemplating a stabilization of the relationship between assets and liabilities that is currently very unbalanced, as well as the fact that there are currently between 1,500 and 2,000 affiliates in condition to retire.
This figure must be carefully substantiated to achieve the votes in the Parliament, so it is not yet a final number, but rather the adjustment of the “fine calculation” is being finished. In this regard, the ABPU had already indicated that the magnitude of the funds required for the rescue was so important which made it difficult to reach an agreement on its financing.
From AEBU, meanwhile, the position is clear: that those involved contribute equally.
Source: Ambito
