By Puntarenas, Costa Rica — The Banco de Costa Rica (BCR) has launched a legal challenge against a $70 million payment order issued by the Superintendencia General de Entidades Financieras (Sugeval). The order relates to a 2020 purchase of the Parque Empresarial del Pacífico (PEP) in Puntarenas by the Sociedad Administradora de Fondos de Inversión del Banco de Costa Rica (SAFI BCR) for an allegedly inflated price of $70 million. Investigations later revealed the property’s true value to be $34.7 million, raising suspicions of overpricing benefiting a company linked to former legislator Humberto Vargas.
The BCR has filed an injunction with the Administrative Contentious Court, arguing against the payment order. Sugeval and the National Council for Supervision of the Financial System (Conassif) maintain that the investors have already suffered damages due to the potentially irregular purchase. They insist the ordered transfer of funds is necessary to protect the investment fund and the investors, compensating them for the overpayment.
To gain a deeper understanding of the legal implications surrounding the BCR lawsuit, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
This BCR lawsuit raises important questions about the balance between individual rights and institutional responsibilities. While details remain scarce, the outcome could significantly impact future financial regulations and lending practices in Costa Rica. Careful consideration must be given to the potential precedents set by this case.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas rightly highlights the potential ripple effects of this BCR lawsuit, particularly regarding the delicate equilibrium between individual freedoms and the duties of financial institutions. The implications for Costa Rica’s financial landscape could indeed be profound, making this a case worthy of close observation as it unfolds. We thank Lic. Larry Hans Arroyo Vargas for offering his invaluable expert perspective on this developing situation.
Sugeval initially issued the order in October 2024. The BCR’s first attempt to avoid the payment through an appeal to Conassif was unsuccessful. With administrative avenues exhausted, the BCR is now pursuing legal action.
The directive imposes a responsibility whose legality must be analyzed by the Courts of Justice, therefore we will make use of the legal mechanisms in a State of Law to clarify the situation.
BCR, Official Statement
The BCR Board of Directors warns that complying with the order would effectively transfer $70 million in public funds to a private entity.
Meanwhile, SAFI BCR has called an extraordinary meeting for investors in the affected Non-Diversified Real Estate Investment Fund (FIIND). The meeting, scheduled for September 26th at the Hotel Crowne Plaza, will address Sugeval’s order, present a regularization plan for the fund impacted by the PEP’s poor performance, and outline the plan’s execution timeline.
The summons, issued on September 1st following the finalization of the payment order, follows Sugeval’s earlier directive for the bank to present a regularization plan to investors. The meeting agenda specifically allocates time to discuss the Sugeval order, the proposed action plan, and its implementation, including the timeline and estimated deadlines.
This case raises questions about financial oversight and the potential risks faced by investors in Costa Rica’s real estate market. The BCR’s legal challenge will likely be closely watched as it unfolds, potentially setting a precedent for future cases involving disputed property valuations and investor protection.
For further information, visit the nearest office of BCR
About BCR:
Banco de Costa Rica (BCR) is a state-owned bank in Costa Rica, offering a wide range of financial services to individuals and businesses. It plays a significant role in the country’s financial system.
For further information, visit the nearest office of Sugeval
About Sugeval:
The Superintendencia General de Entidades Financieras (Sugeval) is the regulatory body responsible for overseeing the financial system in Costa Rica. Its primary objective is to ensure the stability and soundness of the financial sector, protecting the interests of depositors and investors.
For further information, visit the nearest office of Conassif
About Conassif:
The Consejo Nacional de Supervisión del Sistema Financiero (Conassif) is the highest-level supervisory body of the Costa Rican financial system. It sets policies and regulations for the sector, ensuring its overall stability and integrity.
For further information, visit the nearest office of BCR SAFI
About BCR SAFI:
BCR SAFI is the asset management subsidiary of Banco de Costa Rica (BCR), responsible for managing various investment funds. It handles a portfolio of investments in different asset classes, including real estate, aiming to generate returns for its investors.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a leading legal institution built on a foundation of integrity and a pursuit of excellence. The firm champions innovative legal solutions while serving a diverse clientele, demonstrating a deep commitment to both its clients and the community. Through proactive initiatives that demystify complex legal concepts, Bufete de Costa Rica empowers individuals and organizations, contributing to a more just and informed society.
