Dominican Republic sues to recover Baninter assets

Wednesday, March 31, 2004

NEW YORK, USA: The Dominican Republic has filed suit in U.S. federal court against Alvarez Renta, the country's former ambassador to France, for allegedly masterminding a $2.2 billion bank fraud, the Wall Street Journal said. 

The suit seeks $102 million in damages from Renta for his alleged role in the bankruptcy of Banco Intercontinental SA, also known as Baninter. A dual U.S.-Dominican citizen, Alvarez Renta maintains a home in Coral Gables, Florida, the paper said. 

The collapse of Baninter, the country's second-biggest bank, drove the Caribbean nation into an economic crisis from, forcing the government to negotiate a stand-by agreement with the International Monetary Fund, the Journal said. 

According to the complaint, International Bank of Miami, Hamilton Bank and BankAtlantic loaned millions of dollars to companies controlled by Renta. The loans were guaranteed by letters of credit issued by Baninter and Renta used Baninter funds to repay the loans and loot millions of dollars from the bank, the Journal said, citing the complaint. 

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