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Bank’s liquidation creates uncertainty in Honduras

MEXICO CITY (AP) — Honduras’ eighth largest bank is expected to reopen its doors Wednesday amid depositor fears that its liquidation could contaminate the rest of the country’s financial sector.

The government is liquidating Banco Continental following revelations last week that several members of the family who own it are under indictment in the United States on money laundering charges.

Francisco Jose Santa Cruz Pacheco, Pacific Credit Rating’s manager for Central America, said the uncertainty could cause investors to pull their money out of Honduras’ financial sector.

The Honduran government has tried to reassure Banco Continental’s depositors and employees of the bank and the Rosenthal family’s corporate parent Grupo Continental. The country’s central bank guarantees deposits up to $9,600.

Santa Cruz said account holders with balances above that could experience problems.

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