Desyfin ‘intervened’, 4,200 clients have their accounts frozen
The National Council for the Supervision of the Financial System (Conassif) has taken a decisive step by ordering the intervention of Financiera Desyfin S.A. This action was prompted by the General Superintendency of Financial Entities (Sugef) after identifying a series of irregularities within the entity, culminating in a significant interannual loss of ¢4 billion colones as of June 2024.
Rocío Aguilar, Superintendent of Financial Institutions, explained that the intervention follows extensive supervision by Sugef since January of this year. After a thorough review of the portfolio, it was discovered that Desyfin had substantially undervalued loan estimates. This led to the revelation that the financial institution’s level of equity sufficiency was at a mere 8%, indicating severe irregularity issues due to the more than 50% reduction in equity, driven by deficits in specific estimates required for the credit portfolio.
Influencing the decision for intervention were identified deficiencies in loan management and the calculation of risk mitigators. Additionally, Aguilar pointed out the financial institution’s non-cooperative behavior during supervision efforts. As a result, the accounts of 4,200 Desyfin depositors have been frozen. Should a closure of the entity be finalized, affected individuals would be entitled to receive at least ¢6 million colones, as determined by law.
The intervention will initially span 30 calendar days, with a potential extension of another 30 days. Marianne Kött Salas has been appointed as the main auditor for the process, bringing her expertise from her prior legal advisory role at the Central Bank of Costa Rica (BCCR).
Registered on the National Stock Exchange, Desyfin’s primary focus has been on financing projects and contracts with both the public sector, including the central government and autonomous institutions, and the private sector. Following the intervention, investments in the stock market have been suspended for 15 days, and stock exchanges have been directed to notify their clients accordingly.
In light of recent developments, Silvio Lacayo Beeche, who resigned as general manager of Grupo Desyfin in July to assume more strategic positions within the company, has stated their commitment to working on a capitalization plan aimed at strengthening Desyfin’s financial standing to ensure its ongoing operations. Despite the challenging circumstances, Lacayo reaffirmed the institution’s dedication to its stakeholders’ stability and solidity. He assured full cooperation with Conassif and SUGEF throughout the investigation, emphasizing transparency and responsibility in their conduct.
Following the unexpected intervention announcement by Conassif, there has been a heightened awareness of the financial instability within Desyfin, stemming from a significant decrease in assets. This scenario has cast a spotlight on management practices deemed both “irregular and risky.”
Since its establishment in 1991 by Silvio Lacayo Sr., Desyfin has evolved from a family business into a critical player within the financial market, managing resources from various international development banks. Its expansion into personal banking services in 2014 marked a significant milestone, introducing a suite of financial products and services catered to the individual client, including credit and debit cards, savings plans, investment opportunities, and housing loans.
This intervention marks a pivotal chapter in Desyfin’s story, underlining the importance of stringent financial regulation and oversight. As both the financial institution and its clients navigate through this challenging period, the focus remains on rectifying the operational deficiencies that led to this intervention and ensuring a stable future for all parties involved.
