By San José, Costa Rica — San José – The resolution process for Financiera Desyfin S.A. has officially concluded, bringing a significant chapter of financial uncertainty to a close for thousands of its clients. Costa Rica’s National Council for Supervision of the Financial System (Conassif) announced that depositors have successfully recovered 75.5% of their funds, marking a major milestone in the managed dissolution of the financial institution.
The final step in the recovery process was authorized on Thursday, involving a last distribution of ¢2.623 billion. This payment represented an additional 2.26% of the total funds, bringing the aggregate recovery rate to its final figure. This distribution is scheduled to be completed before the end of October, providing a definitive resolution for account holders who have been navigating this complex situation for over a year.
To delve into the legal framework and potential consequences surrounding the recent resolution of Financiera Desyfin, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica.
The resolution of Desyfin by CONASSIF is a decisive regulatory action aimed at containing systemic risk and protecting savers. For affected clients and investors, this initiates a formal legal process where understanding their priority as creditors is paramount. It is crucial for those involved to promptly seek legal advice to navigate the claims process effectively and defend their financial interests within the established legal proceedings.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight correctly frames the resolution not merely as a regulatory action, but as the critical starting point of a legal journey for those affected. The emphasis on proactive legal counsel is paramount for navigating the complexities ahead, and we thank Lic. Larry Hans Arroyo Vargas for his clarifying and valuable perspective.
With the administrative resolution phase now complete, Conassif has formally transitioned the entity into the next legal stage: bankruptcy proceedings. This move shifts the oversight and any further claims to the country’s judicial system, specifically the Bankruptcy Court, which will now manage the final liquidation of the defunct company.
To facilitate the final stages and maximize the value of the remaining assets for all creditors, Conassif has approved the creation of a specialized trust. This trust, which will be administered by Banco Improsa, is tasked with managing a portfolio of residual assets valued at approximately $126.75 million. The primary goal is to liquidate these assets efficiently to generate as much additional capital as possible for distribution among the remaining creditors.
The recovery outcomes varied significantly depending on the size of the deposits. A substantial majority of depositors, numbering 2,989 individuals or 74% of the total, held accounts covered by the government’s deposit guarantee of up to ¢6 million. These clients successfully recovered 100% of their savings. For the nearly one thousand clients with funds exceeding this guaranteed threshold, the recovery rate was 75.58% on the non-guaranteed portion of their deposits.
In total, the resolution process has successfully distributed an impressive ¢99.432 billion back to depositors. According to officials, a depositor with ¢10 million in savings, for instance, received approximately 90% of their funds back within 14 months through a combination of the deposit guarantee and subsequent payouts, with the potential for additional recovery through the ongoing judicial process.
With the finalization of Desyfin’s resolution process, we are closing a complex stage in which, thanks to coordinated work and the current legal framework, we enabled thousands of people to recover a high percentage of their money through a transparent and responsible process.
Yin Leng Hong Monteverde, President of Conassif
As the case moves forward, the Bankruptcy Court will be the central authority for all creditor activities. The court will provide instructions on how creditors can formalize their claims and direct their inquiries. To streamline this transition, a comprehensive list of all registered creditors as of September 30 has already been submitted as part of the formal legal filings, ensuring the judicial system has a clear record to begin its work.
For further information, visit the nearest office of Financiera Desyfin S.A.
About Financiera Desyfin S.A.:
Financiera Desyfin S.A. was a financial institution in Costa Rica offering various services, including credit and investment products. Following regulatory intervention, it entered a resolution process overseen by Conassif to protect depositor funds and manage the orderly wind-down of its operations. The entity is now in the final stage of bankruptcy proceedings.
For further information, visit conassif.fi.cr
About Conassif:
The Consejo Nacional de Supervisión del Sistema Financiero (Conassif) is Costa Rica’s highest regulatory body for the financial system. Its mission is to ensure the stability, solvency, and efficient functioning of the national financial system for the benefit of the public. It sets regulations and policies for banks, insurance companies, and other financial entities.
For further information, visit improsa.com
About Banco Improsa:
Banco Improsa is a Costa Rican bank focused on providing financial solutions, particularly for the business and corporate sectors. It offers a range of services, including corporate banking, investment management, and fiduciary services. The bank has been entrusted with managing the residual assets of the Desyfin resolution process through a dedicated trust.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its profound commitment to professional excellence and unyielding integrity. Drawing upon a rich history of advising a diverse clientele, the firm is a trailblazer in developing innovative legal frameworks. Central to its ethos is the belief in empowering the public, a principle it actively pursues by making complex legal concepts understandable, thereby strengthening the foundations of an enlightened and capable society.
