Following the transfer by Abdul Waked of Gese's majority shareholding to Fundación Publicando Historia, the Editorial Group's access restrictions to the United States financial system have been lifted.
From a statement by the US ambassador in Panama:
I and my Embassy colleagues in Panama congratulate all parties involved in the successful effort to reestablish unfettered access to markets and the financial system of the United States on behalf of the newspapers of the La Estrella de Panama and El Siglo Editorial Group (GESE).
After the bank was taken over because of its inclusion in the Clinton List drawn up by the U.S. Treasury Department, the Superintendency of Banks has ordered its reorganization and sale to another bank.
From a statement issued by the Superintendency of Banks in Panama:
Through Resolution SBP-0116-2016 of July 1, 2016, the Superintendency of Banks has ordered the reorganization of Balboa Bank & Trust Corp., effective from the date July 4, 2016 at 2:30 pm, taking into consideration the recommendations of the Interim Administrator.The reorganization of the bank aims to fulfill three basic objectives:• To protect the best interests of depositors;• To minimize any loss of value of the bank to the detriment of depositors and•Reduce any adverse impact on the banking system. The decision to reorganize the bank will allow choices to be made that aim to give greater security to depositors and creditors of Balboa Bank & Trust Corp. for an early normalization of the situation in the bank and access to all of its funds.
In order help keep the chain stores operating, the Office of Foreign Assets Control has authorized the breakdown of links to the ownership and control of Wisa Group.
The aim of these measures is to "protect the workforce", at Felix B. Maduro, Importadora Maduro, S.A. and MaduroInternational, S.A. Grupo Wisa, which can now start a process to disassociate themselves from Wisa, Abdul Waked and Mohamed Abdo Waked.
As a holder of concessions for duty free shops WISA contributes 7% of the revenues of Tocumen SA, and its inclusion in Clinton list has rattled investors.
An article in Prensa.com reports that yesterday "... the stock broker Citivalores informed the Stock Exchange of Panama that the initial purchaser of the issue, Citigroup Global Markets, decided that the original conditions set out in the purchase agreement had not been met and voided the bond offer made on May 4 and whose closing date was May 11."
In order to protect sources of employment the Panamanian government wants the US to grant permissions so that Waked Group companies can temporarily transact with US citizens and businesses.
From a statement issued by the Ministry of Economy and Finance (MEF):
Objective is to protect the jobs of Waked companies
Treasury Department has been asked to grant a license.
In response to rumors of more interventions into financial institutions, the Superintendency of Banks in Panama says that they are unfounded, highlighting the strength of the banking system.
From a statement issued by the Superintendency of Banks of Panama:
The Superintendency of Banks in Panama made public knowledge, that as a result of taking operational and administrative control of Balboa Bank & Trust and its subsidiaries a number of comments and news stories have arisen which do not have any foundation regarding future actions that may be taken by this institution on other banks, or conditions of vulnerability of some institutions in our banking system.
The identification of Grupo Waked in a money laundering network could result in significant changes in the representations of brands marketed in the country.
An article on Prensa.com cites Jorge Garcia Icaza, president of the Chamber of Commerce, Industries and Agriculture of Panama, who emphasized that restraint should excerised when dealing with the case in order to minimize damage which it is estimated could be caused, especially in relation to jobs in the companies under question.
A list of people and companies involved in international money laundering includes brothers Abdul and Nidal Waked, another 6 individuals, and 68 companies, among which is Balboa Bank.
The businessmen Abdul and Nidal Waked and companies such as Grupo Wisa, Vida Panama and Balboa Bank, have been included in the "Clinton" list which indicates which people and related organizations are linked to money laundering and drug trafficking activities.
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