Miguel Vargas denies irregularities on loan from BanReservas
He called the reports "lies" that are spread by divisionist interest from Mejia group
Diario Libre
SANTO DOMINGO. Two days after the Dominican Revolutionary Party group led by former President Hipolito Mejia accused him of improperly obtaining a US$15 million loan from BanReservas, Miguel Vargas responded to what he called "malicious and divisionist."
As he read a document in the company of his lawyers, the PRD president first admitted the request and the granting of the loan for his company, General de Galerias Comerciales Mundo Mall S.A., although a copy of the letter requesting the loan on 25 July 2011 indicated that the amount required was US$20 million.
Following this, and using repeatedly the word "lie", he said that he had the qualifications to receive a loan for this amount, since his commercial registry, of 31 March 2006, showed his capital to be RD$628 million.
Regarding what was " approved in a record time of 11 days," he said that the process lasted seven months from the request until the disbursal, but he did not say when that was.
According to photocopies that were shown, the loan contracrt was signed on 19 December 2011; and the one for a line of credit with a mortgage guarantee on four parcels of land and improvements, located on the Maximo Gomez Avenue and appraised for " an amount of over US$44 million" on 31 January 2012.
The accusation pointed out that these lands were to be used to develop a housing project, the justification for the loan, and that as of today they have not places " a single block."
Vargas did not make a reference to this project and request and neither did he note this aspect. Nevertheless, a letter from BanReservas in 2011 points out as the destination for the financing as "working capital for the development of projects." In addition, it asks for the process of bringing the cadastral measurements up to date on two parcels and a property of the mortgage guarantee.
Vargas also said that his company generates hard currencies through the sale of the housing projects.
Finally he said that he was presenting as an additional proof of his solvency a copy of a loan contract with JP Morgan for US$15 million. Nevertheless, in the documents that were given to the press there is only one page with a "Grid time promissory note" .
The photocopy includes the following paragraph: " this note does not create and will not be interpreted to create any contractual commitment or of any other type for Bank loans. This note is carried out and delivered to the Bank as evidence of the loans that the Bank could extend to the borrower at the sole discretion of the Bank."
As he read a document in the company of his lawyers, the PRD president first admitted the request and the granting of the loan for his company, General de Galerias Comerciales Mundo Mall S.A., although a copy of the letter requesting the loan on 25 July 2011 indicated that the amount required was US$20 million.
Following this, and using repeatedly the word "lie", he said that he had the qualifications to receive a loan for this amount, since his commercial registry, of 31 March 2006, showed his capital to be RD$628 million.
Regarding what was " approved in a record time of 11 days," he said that the process lasted seven months from the request until the disbursal, but he did not say when that was.
According to photocopies that were shown, the loan contracrt was signed on 19 December 2011; and the one for a line of credit with a mortgage guarantee on four parcels of land and improvements, located on the Maximo Gomez Avenue and appraised for " an amount of over US$44 million" on 31 January 2012.
The accusation pointed out that these lands were to be used to develop a housing project, the justification for the loan, and that as of today they have not places " a single block."
Vargas did not make a reference to this project and request and neither did he note this aspect. Nevertheless, a letter from BanReservas in 2011 points out as the destination for the financing as "working capital for the development of projects." In addition, it asks for the process of bringing the cadastral measurements up to date on two parcels and a property of the mortgage guarantee.
Vargas also said that his company generates hard currencies through the sale of the housing projects.
Finally he said that he was presenting as an additional proof of his solvency a copy of a loan contract with JP Morgan for US$15 million. Nevertheless, in the documents that were given to the press there is only one page with a "Grid time promissory note" .
The photocopy includes the following paragraph: " this note does not create and will not be interpreted to create any contractual commitment or of any other type for Bank loans. This note is carried out and delivered to the Bank as evidence of the loans that the Bank could extend to the borrower at the sole discretion of the Bank."
Diario Libre
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