Bank bailout no. 1

Latin CEO: Executive Strategies for the Americas, March-April, 2002 by Rochelle Broder-Singer

The country's largest private bank hopes to ride out the current economic crisis with a bailout plan. Locally owned Banco Galicia will sell US$400 million of its mortgage portfolio to 18 banks with Argentine operations. The government will pump up another US$400 million into Galicia, while international creditors will put US$150 million into the bank in exchange for equity, board seats and the resignation of chairman Eduardo Escasany.

Earlier, Uruguay's government took over Galicia's operations in that country after depositors withdrew some 30 percent of the banks total deposits.