Broadcast United

Desyfin intervention results in millions of colones in pensions, funds and solidarity being frozen

Broadcast United News Desk
Desyfin intervention results in millions of colones in pensions, funds and solidarity being frozen

[ad_1]

Intervention Desifen This has resulted in millions of colones being frozen in savings instruments owned by pension funds, solidarity associations, insurance companies and investment funds. The fate of the resources is pending the determination of the future of the financial institution.

As of June last year, the balance of these financial products was 57.54 billion euros between debt bonds and Desyfin term certificatesbased on different databases of the Superintendence of Pensions (Supén), the General Supervisory Authority of Securities (Sugeval), the General Supervisory Authority of Insurance (Sugese), and reports published in the financial statements of these creditors.

The Intervention Administration, headed by Marianne Kött Salas, confirmed nation All of Desyfin’s obligations to investors and depositors remain frozen.

”Los Payments or similar actions will continue to be suspended Its purpose is to assess the real financial situation of the entity (…) The payment moratorium applies to all debts of the entity, without distinguishing between maturity periods,” it said in writing.

Last Monday, August 19, one of the consequences of the intervention was evident: financial companies failed to pay £3 billion Capital provided to investors as debt bonds that mature on the same day.

The adverse effects of the intervention not only harmed the financial instruments and entities that were direct clients of Desyfin, but also indirectly affected other participants.

Acobo Vista SFI reported in a related event on Friday, August 23, that none of its funds holds Desyfin securities, but confirmed that it does maintain investments in other financial funds using existing resources of the intervened entity.

“These investments were impacted, resulting in a deterioration in the income of our funds, which negatively impacted the performance of the relevant funds on August 21. This situation is isolated and immediate steps have been taken to mitigate the impact of the incident,” Akobo announced to the financial media.

The National Financial System Supervision Commission (Conassif) ordered an intervention against Desyfin on August 13 for a period of 30 calendar days, extendable for another 30 days. The action against the financial company was due to the mismanagement of its credit portfolio, which amounted to £125.341 billion in June last year.

The process was initiated at the suggestion of Sugef after Desyfin was forced to estimate the bad debts that consumed 88.5% of the entity’s assets, reducing them to 1.339 billion pounds from the previous 11.701 billion pounds. This situation reduced the equity adequacy ratio from 10.20% to -0.06%. Both situations put the entity into financial irregularity 3, which means that immediate intervention is required.

The largest amount of pension funds

The pension system is the most at risk for Desyfin’s intervention, as they had not invested in it until June last year. £44.698 billion According to the data requested by Supén, in securities and time deposits nation.

The regulator confirmed that the institutions whose funds were frozen include the Judiciary Retirement and Pension Fund, the Costa Rican Electricity Institute (ICE) Employees Security and Savings Fund, the Popular Pension and the Lottery Sellers Retirement and Pension Fund.

Supong Mayor Adrian Pacheco said that only the Judiciary and ICE funds invested more than 1% of the portfolio, while the rest were below that. The official stressed that the acquisition of debt and resources in the certificates were carried out in accordance with current laws and regulations.

In terms of securities, the balance of the Judicial Branch Fund is £11.5 billion According to the regime’s financial statements, the investment was made as of June last year. The amount represents 1.5% of total assets. The regime’s management committee confirmed that they purchased four securities between August 2021 and November 2023.

“The bonds issued by Financiera Desyfin (…) were purchased after due diligence and supported by an analysis based on data published by regulatory entities and risk rating agencies, which do not show any alarm or anomalies of circumstances that would affect the compliance of these payments,” the board mentioned in writing.

In addition, the agency added that they will register and reclassify these financial instruments for impairment and evaluate them to determine the extent of the impact.

In the case of public pensions, the entity places £3.099 billion The amount comes from four voluntary funds and subsidiary resources of the Workforce Capitalization Fund (FCL). The operator’s manager, Róger Porras, said that the amount is equivalent to 0.06% of the total resources managed by the entity.

“It is worth mentioning that these investments have been made since 2021 and in full compliance with current regulations (…) At the time, Desyfin did not reflect any circumstances that would foresee problems with the entity; in fact, this was already reflected in the information available to investors at the time,” Porras stressed.

The spokesperson said that the results and conclusions of the analysis are still pending, but accounting adjustments have been made to place the investment in a restricted account.

Under the ICE Worker System, the financial statements at the end of 2023 show that the fund held Desyfin securities in the amount of £999 millionHowever, the amount of the clause was not specified. nation The fund manager was contacted by email at 1:12 pm on Thursday regarding the total investment amount and precautionary measures implemented, but had not received a response as of the time of writing.

For its part, as of last June, the lottery seller regime had £279 million According to the entity’s financial statements, this amount represents 0.6% of the total managed capital of the intervened financial company of 43.836 billion euros.

The pension fund of the judiciary, the popular pension fund and ICE employees are among the entities that had their resources frozen as a result of Desyfin’s intervention.
The pension fund of the judiciary, the popular pension fund and ICE employees are among the entities that had their resources frozen as a result of Desyfin’s intervention. (nation)

Creditors in SAFI

In addition to the pension scheme, three investment fund management companies (SAFIs) have registered a joint investment £7.697 billion Client resources from various funds are invested in Desyfin. These companies are Mutual Fondos, Banco Pop and Banco de Costa Rica (BCR).

Volkswagen SAFI is the financial company with the most investment funds. In the mixed US dollar liquid investment fund, 8.26% of the management resources are in the financial sector, i.e. £2.015 billion; 8.65% of the Colones Hybrid Liquidity Investment Fund portfolio owns these assets, equivalent to 4.07 billion pounds. The information comes from relevant facts released by SAFI and statistics published by the Sugeval portal as of July 31.

It was also noted that these amounts accounted for 1.45% of total funds under management.

“These percentages have been separated from the portfolios of the two funds to constitute ‘separate auxiliary funds’ and are registered in detail in memorandum accounts, distinguishing separately the participation of each investor,” the company noted in a statement to the stock market last August 20.

For its part, Mutual SAFI informed its investors that five managed funds have regular certificate investments. Financial Instruments Mutual Fund I, Mutual Fund II, Growth Fund and Income Fund jointly have £568.4 million Desyfin accounts for 4.47% of total management.

The entity isolated the affected tools and created an estimate of 50% of the resources.

The Colones #1 Mortgage Portfolio Future Flow Securitization Investment Fund, also from Mutual SAFI, invested 16.3% of its assets, or £535.8 million.

“The Investment Committee of the Securitization Investment Fund (…) agreed at its 28th meeting on August 16, 2024 to determine a 20% impairment of the product in accordance with IAS 36 (International Accounting Standards) as of September 1, 2024”, this is specified in the relevant facts published on Tuesday, August 20.

Douglas Montero, manager of BCR SAFI, explained to investors that only the Dólares mixed investment fund has an investment in Desyfin, which accounts for only 0.79% of assets, i.e. £507.6 millionaccording to Sugvar’s records.

“According to BCR SAFI estimates, in the most negative scenario, the impact on results would be -0.05%,” Montero reported in a letter to clients on August 13, the same day Conassif intervened in the finances.

What about unity?

As far as solidarity associations are concerned, four reported £680 millionThis was confirmed by Guido Alberto Monge, executive vice president of the Costa Rican Solidarity Movement (MSC).

“We carried out a first survey and 18 associations responded, of which four said they had been affected. The survey was conducted anonymously. Therefore, it is impossible to know if any of them were also affected by Kupsayvidores,” Monge said.

The Sugarwal data also show that a group of non-financial public institutions own instruments from intervened financial institutions amounting to £3 billionbut did not specify what they were.

Finally, the insurance companies holding Desyfin bonds are Mapfre and Oceanica de Seguros, among which £723 million yes £705 millionas of July last year, respectively, according to information posted on Sugese’s website.

[ad_2]

Source link

Share This Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *