The Banco Anglo Costarricense was established on June 25, 1863 with a capital of 1 million pesos contributed by Mr. Montealegre ( born in Costa Rica) Edward W. Allpress and Allan Wallis from England

It was the first private Bank in Costa Rica. The creation of the bank was a product from the union of the oligarchy coffee and the merchants agro exporting.

In 1864, the Bank assumed the issuer function of its own bills, even on a fourth part of the value of its capital on effective utilities. On April 17, 1877, the Bank Anglo Costarricense changed its form of society into silent partnership into joint-stock company.

In 1948 it is expropriated for public utility reasons and the bank shares were paid. By that time the state and the Economy Department took possession immediately of this institution

It is kept as bank of the State up to September 14, 1994 in which the Bank concludes its operations. The reason of the Government for this operations closing was that it accumulated excessive important losses for the erroneous investment with bonds of the foreign debt of the Venezuela´s government

The purchase on the part of the Banco Anglo Costarricense of the feeder industries AVC Commercial Values S.A, AVC Values and BOLTEC S.A. for sum very superior to its real value, and AVC's case (Panama) - ANGLO AMERICAN BANK.

The situation of the credits and overdrafts proceeded in irregular form for more than ¢ 5.000 billions.

The loss of $ 55 million, supposedly for the acquisition on the part of the Banco Anglo Costarricense of bonds of the external debt of Venezuela or other business.

The capacity of the Bank to generate utilities for that then enough was limited

Bank registered losses of around 8,100 million colons, also the classification of the portfolio by risk, whose analysis lead to the re-qualification on the part of the AGEF

Deterioration of the confidence of the Public in this institution

The complete reorganization of all the areas related to credit

To fortify the collection area and to realise the pertinent managements to increase the generation of liquidity by means of the sale of credit portfolio

Operation Submanagement in charge of the collection management

Increase of the liquidity of the Bank by means of recoveries

Due to a quality of the portfolio one resorted more and more to the judicial collection

Slow period of recovery of the operations assigned for the judicial collection

Proceedings of payment adjustments Financial statements of the BAC

consolidated with their subsidiaries showed a deficit

Enormous loss suffered by the BAC due to the speculation with titles of Venezuelan external debt

September 14, 1994: Special group created by Asamblea Legislativa (Exp. 12,003)

Judge advocate detects fails about documents and colaboration of people

BAC bought 2 companies in a higher price that the real one

Irregular procedures about credits and override

The lost of $55 millions by external debt of Venezuela

Reviewing of different documents: Sugef, BCR, BCCR, Public Ministery and others

Declaration of 59 directors and employees of the bank

References and results of auditory

AVC Valores Comerciales: BAC could not intervening in private business (Organic Law of National Bank System)

Banking operations in stock market No legal adjustment AVC did not have fiscal reporters BAC adquire AVC in $5 millions Contraloría said that documents are

incomplete BAC did not apply for BCCR authorization

Price established by BAC, was not real Sale was made to the same bank It is supposed that BAC changed bonus of

BCCR by investment certificates of AVC In Financial Balances there are not lost

because are of the same company The objective of purchase is different of

the objective given by the bank AVC is not enrolled in Bolsa Nacional de

Valores

The consequences of losses incurred by the Bank, identified during the first phase of the intervention and attributable to the financial problems resulting from improper conduct of the authorities responsible for handling the BAC until 31 May 1994 resulted in a deterioration of public confidence in the institution

The complete overhaul of all areas related to credit is one of the first fields.The primary objective was to strengthen the fee area and make arrangements to increase the generation of cash by selling the loan portfolio.Effordts for the recovety porfolio

Provide resources to the judiciary and the SUGEF to determine with certainty the turn, use and final destination of the resources of the BAC.

The BAC Board of Liquidators manage must recovery of money from the BAC has not been lost.

The idea of cleaning up to future State Bank and the country's financial system in general

All appointments of directors of the national banking system must be countersigned by the Superintendent of Financial Institutions, which must justify its decision