The AREB is unable to ensure adequate protection in the BPA case

The “hot potato” that the case of the intervention of the Banca Privada d’Andorra (BPA) has become, does not dent the Minister of Finance, Jordi Cinca, who has not been able to ensure that the State Agency for Resolution of Banking Institutions (AREB), established by the Government of Andorra, processes more transfers between BPA and Vall Banc. In addition, every time fewer clients may be able to migrate from one entity to the other.

The minister defends the indefensible, the irresponsibility attributed to AREB and the possibility that other countries will consider Andorra as a less serious financial market, is total responsibility of the agencies of the Principality. The solutions adopted in the BPA case have had costs for all parties, in total, less than those suffered in other similar crises.

What is certain is that Andorra has never had the ability to give a clear answer to a serious situation, in the eyes of the international market, while Cinca did not have any other option than to acknowledge that Credit Suisse continues without unlocking the variable interest that BPA has deposited. In effect, the Swiss entity has requested prerogatives from the first day, which Andorra has neglected; it would seem that the Minister Cinca is pretending to divert the attention to cover up the inability of AREB.

During the process of forcible liquidation of BPA, AREB has been negligent at all times and unable to ensure adequate protection of the rights of the investors. To the contrary, it has caused more damage and their lack of response has led to the failure of the negotiations with the new entity that guardianship the funds.

The great solvency proclaiming the Andorran banking, was unfortunately never a relief to the savers and, despite AREB having been instated, this institution has also not done anything to review the cases of the depositors in Europe. To the contrary, it has managed to become a real obstacle for the affected clients in accessing all of their deposits. Worse yet, nor the Government of Andorra itself was able to come to the rescue of the financial system or to act as an ultimate lender to avoid a liquidity crisis that dragged in distrust and discredit to its main subsidiary, the Banco Madrid, acquired in 2011 by BPA.

Meanwhile, the brothers Higini and Ramon Cierco, former main shareholders of BPA, still maintain legal actions presented in multiple jurisdictions, after having offered repeatedly a negotiated solution to a crisis that negatively affects the Principality.

The Cierco group has assured that the Government of Andorra has systematically rejected the dialog, and is criticizing the opacity of the process associated with the intervention of BPA, since the audit by PricewaterhouseCooper (PwC) has still not been made public after over a year since its conclusion. The former shareholders of the Andorran bank have been convinced that the senseless actions by the Government of Andorra, and by the institutions that have accompanied – mainly AREB-, in the subsequent management of the crisis following the intervention of the BPA, have given way to the worst moments in the country’s recent financial history.