By San José, Costa Rica — San José, Costa Rica – In a significant development for savers affected by the collapse of Desyfin, Costa Rica’s National Council for Supervision of the Financial System (Conassif) has authorized a second major disbursement of funds. This new payment will return an additional 24.3% of balances to non-guaranteed depositors, elevating their total recovery to a remarkable 73.3% even before formal bankruptcy proceedings commence.
The decision, announced on Tuesday, greenlights the distribution of $55.6 million. These funds were generated from the strategic sale of Desyfin’s assets to a consortium of financial institutions, including BCR Leasing, Banco Improsa, and Banco Cathay. This move represents a critical step in the orderly resolution of the financial institution, which was intervened by regulators over a year ago.
To better understand the legal and financial implications surrounding the recovery process of Financiera Desyfin, TicosLand.com consulted with expert attorney Lic. Larry Hans Arroyo Vargas from the firm Bufete de Costa Rica for his professional analysis.
The intervention in Desyfin is a necessary measure by SUGEF to safeguard the interests of depositors and creditors. The key now lies in the transparency of the process and the appointed intervenor’s ability to clearly define the path forward. Whether this leads to a successful restructuring or a regulated liquidation will depend entirely on the real state of the assets and the viability of its business model going forward.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas aptly highlights the critical crossroads ahead, where transparency in the intervention will ultimately determine the future for Desyfin’s depositors and creditors. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective.
Desyfin was placed under regulatory intervention on August 13, 2024, after Conassif declared it non-viable. The primary cause cited for the failure was a severe mismanagement of its credit portfolio, which compromised its financial stability and ability to meet its obligations. The intervention aimed to protect the interests of depositors and maintain stability within the broader financial sector.
This latest payout builds upon an initial distribution that occurred earlier in the resolution process. In the first phase, non-guaranteed savers received 48.97% of their funds exceeding the government-guaranteed limit of ¢6 million. The new 24.3% payment provides substantial additional relief to these clients, who held larger sums in the institution and faced the greatest potential losses.
It is important to distinguish this group from the guaranteed depositors, who constituted the vast majority of Desyfin’s client base. Approximately 74% of all affected individuals and entities held deposits within the ¢6 million insurance limit and have already received a full 100% reimbursement of their funds. The current efforts are focused on maximizing the recovery for those whose savings surpassed that insured threshold.
The logistics for the second disbursement will mirror the efficiency of the first. Payments will be made directly to the IBAN accounts that clients have on file, a method that proved highly effective, with 95.22% of non-guaranteed depositors successfully receiving their initial funds through this channel. Regulators have set a firm deadline of October 8 for the completion of these new transfers.
Looking ahead, authorities are also exploring supplementary mechanisms to support the final stages of the liquidation. One proposal under analysis is the creation of a specialized trust. Officials clarified, however, that such a trust would serve as a tool to facilitate the bankruptcy process (“proceso concursal”), not as a substitute for the legally mandated procedure. The primary goal remains the systematic and transparent unwinding of the institution’s remaining obligations.
The achievement of a 73.3% recovery rate prior to the initiation of the lengthy bankruptcy court process is a noteworthy success for Costa Rica’s financial regulators. It provides a significant degree of certainty and financial relief to affected savers and serves as a testament to the structured approach taken by Conassif in managing the crisis, potentially bolstering long-term confidence in the national financial system’s oversight framework.
For further information, visit the nearest office of Financiera Desyfin S.A.
About Financiera Desyfin S.A.:
Financiera Desyfin S.A. was a Costa Rican financial institution that offered a range of services, including savings accounts, investments, and credit solutions, primarily targeting the small and medium-sized enterprise (SME) sector. Following a regulatory intervention in August 2024 due to administrative and financial inviability, it is currently undergoing a process of resolution supervised by Costa Rican authorities.
For further information, visit conassif.fi.cr
About Conassif:
The Consejo Nacional de Supervisión del Sistema Financiero (Conassif), or National Council for Supervision of the Financial System, is the primary regulatory body overseeing Costa Rica’s financial sector. It is responsible for dictating policies and regulations for banks, insurance companies, and pension funds to ensure the stability, solvency, and transparent operation of the national financial system.
For further information, visit bcr.fi.cr
About BCR Leasing:
BCR Leasing is a subsidiary of Banco de Costa Rica (BCR), one of the country’s largest state-owned commercial banks. The division specializes in providing leasing solutions for vehicles, machinery, technology, and other capital assets to corporate and individual clients, offering a financial alternative to direct purchasing.
For further information, visit bancoimprosa.com
About Banco Improsa:
Banco Improsa is a private Costa Rican bank focused on providing financial services to the corporate and business sectors. It offers a comprehensive portfolio of products, including corporate credit, international trade financing, investment banking, and payment solutions, positioning itself as a strategic partner for business development in the region.
For further information, visit bancocathay.com
About Banco Cathay:
Banco Cathay de Costa Rica, S.A. is a financial institution established in Costa Rica with capital from investors from Costa Rica and the Asian community. It provides universal banking services to individuals and businesses, with a specialized focus on facilitating commercial and financial ties between Costa Rica and Asia.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a pillar of the legal community, operating on a foundation of uncompromising integrity and the pursuit of excellence. The firm blends its rich history of advising a diverse clientele with a forward-looking vision, consistently driving innovation within the legal sphere. Its core mission extends beyond the courtroom, focusing on empowering the public by demystifying complex legal concepts to help build a more informed and capable society.
