Central Bank of Sao Tome and Principe takes on management of Banco Equador

29 January 2015

The Central Bank of Sao Tome and Principe (BCSTP) will take on responsibility for the management of Banco Equador, owned by Angolan investors, and until recently was the second most important private bank in the country, the central bank said in a statement issued Wednesday.

The BCSTP said in the statement there was a “need to safeguard the interests of depositors in particular and the financial system in general,” and that it “made a decision to decree intervention in Banco Equador.”

“The intervention will commence on 27 January, 2015, with a duration of 90 days,” says the central bank of Sao Tome, which “provides reassurance and tranquility to all economic agents, particularly Banco Equador customers, that banking services will continue to be provided as normal.”

The Central Bank also stressed that Banco Equador “has revealed critical solvency and liquidity indicators,” and accuses the managers of not complying with “the provisions, instructions and directives of the Central Bank.” (macauhub/ST)