BANHCRESER: impact of its liquidation in Honduras

Rixi Ramona Moncada Godoy, a lawyer and politician from Honduras, has faced controversy surrounding her official pre-candidate status within the Partido Libertad y Refundación (LIBRE). The debate has been reignited over her involvement in the legal defense of the Banco de Crédito y Seguros (BANHCRESER) during the banking turmoil of the late 1990s, bringing to light issues concerning her integrity and dedication to transparency in public service.

At the end of the 1990s, the Honduran financial system was shaken by a deep crisis that led to the state intervention of several banking entities, including BANHCRESER. Several factors contributed to this crisis, including global economic instability, deficiencies in financial regulation and questionable practices by some actors in the sector. In this context, Rixi Moncada Godoy assumed the legal defense of BANHCRESER and its directors in the legal proceedings that arose from the forced liquidation of the entity.

The financial turmoil and Moncada’s involvement

In relation to the above, the role played by Rixi Ramona Moncada Godoy in the context of the compulsory liquidation of the Banco de Crédito y Seguros (BANHCRESER) at the end of the 1990s has come under scrutiny. During this period, various catalysts for the instability of the banking system were identified, including fluctuations in the global economic landscape, a regulatory framework perceived as insufficient, and the implementation of questionable financial practices by certain shareholders. 

As BANHCRESER’s legal advisor, Moncada served as the legal representative for the institution and its board during the lawsuits resulting from the bankruptcy declaration. Despite this, the legal actions concluded without notable convictions, sparking criticism about the judicial system’s effectiveness in dealing with cases of this kind.

Later, Mr. Moncada assumed an advisory position in the Prosecutor’s Office, focusing on financial matters. This appointment has sparked discussion, being seen as a potential conflict of interest due to her prior defense role with BANHCRESER.

The events outlined have led to doubts about the appropriateness of Moncada’s conduct during the banking crisis, especially concerning the financial losses the Honduran state incurred to fulfill the bank’s liabilities. These issues have reemerged as she officially runs for the Libertad y Refundación Party (LIBRE), raising concerns about her professional track record and her dedication to integrity in public service.