Credinka clients depend on luck to recover all their money

The corporate pillars of Diviso Grupo Financiero: “High Finance for All! You grow, we grow!” remained only on paperThe Superintendency of Banking, Insurance and AFP (SBS), announced yesterday that intervened in the Credinka Financial Company, the most important subsidiary of the Diviso Group, after the entity “She had deficiencies in credit management and evaluation, which led to serious problems with her income.”.

LOOK: SBS intervenes in Financiera Credinka: What will happen to savers?

“You will see that this financial institution had monthly losses of around three and four million soles. It was unable to reach a point where it could raise its“said Jorge Mogrovejo, deputy superintendent of Banking and Microfinance at the SBS.

According to the SBS, Financiera Credinka’s corrective measures to reverse its negative results were not sufficient and nor did it materialize the capital increases to ensure its viability.

Financiera Credinka has benefited from the State’s asset strengthening programs through which it has access to resources for S/39.1 million. Mogrovejo specified that, If the State’s contribution is subtracted from the financial institution, its capital was negative..

They depend on luck

From morning until late last night, clients of the financial institution went to the branches in Cusco and other towns. However, for the more than 120,720 savers, recovering all of their deposits will depend on luck.

In line with the state program that the financial institution has adopted, the SBS will today call for a tender to auction off Credinka’s block of credit and savings assets. The success of this auction It is essential for savers to be able to recover all their money.

“Tomorrow (today) we will be announcing the results of this contest. If successful, Credinka’s depositors and debtors would become clients of this other financial company,” said Mogrovejo.

What does success depend on? According to Mogrovejo, participants must be specialized microfinance entities, whose financial strength has a risk rating of B- or higher, and there must be interested parties.

And the SMV?

For the professor of the University of the Pacific, Enrique Castellanos, the intervention of Financiera Credinka should also lead to an intervention by the Superintendency of the Securities Market (SMV) in Diviso Grupo Financiero, since it could not count on the support for its main subsidiary. At the end of 2023, 76.7% of Diviso’s capital was invested in Financiera Credinka, according to its financial statements..

“A fund manager and a brokerage firm, for better or worse, manage third-party money. In theory they should not mix, but it can happen. Therefore, Regulation has to be transversal. If I intervene in one unit, I should eventually have some kind of intervention in the other two.“Otherwise the turtles will go from one place to another,” Castellanos concluded.

What did Diviso say?

“Diviso’s other operations are operating. Sad news because of the special affection for this operation,” said Fernando Romero, president of Financiera Credinka, managing director of Diviso Grupo Financiero, as well as president of the Lima Stock Exchange (BVL Group). However, there are deposits of more than 120,720 savers that are at stake and are waiting for their money to be returned in full, in addition to money from the Public Treasury.

Romero refused to give further statements.

For its part, Diviso issued the following statement:

“We understand that the situation may be a cause for concern, and we therefore want to address the concerns of our customers and partners in a clear and direct manner. In this way, we are attentive and resolving queries through our official channels,” they indicated.

“Diviso Grupo Financiero deeply regrets that market conditions, the effects of COVID-19 and social conflicts have led to a deterioration in the solvency of our subsidiary. However, it is worth mentioning that, since the end of 2019, efforts have been made to strengthen the financial institution’s assets with the full knowledge of our regulators,” it added.

“Regardless of whether Financiera Credinka SA is undergoing intervention or is closing down, we inform you that the other companies and investments that make up the Diviso Group are operating normally, especially our capital market companies. The services offered will not be affected,” it said.

“It is important to note that, as of the close of June 2024, the equity of Financiera Credinka SA represented 15.74% of the total assets of Diviso Grupo Financiero.”

“Any updates regarding the intervention procedure of Financiera Credinka SA will be communicated in a timely manner through the official communication channels of the SBS,” they concluded.

The Securities Market Superintendency declined to comment for this article.