SANTIAGO (Dow Jones)--In light of Chilean department-store retailer Empresas La Polar SA's (LAPOLAR.SN) financial woes, the government will set up a Financial Stability Council, El Mercurio newspaper reported Wednesday, citing the Finance Undersecretary.
The council, to be composed of the Finance Minister, the president of the central bank and sector regulators, will act as a coordinating task force in the event of a financial crisis, Finance Undersecretary Rodrigo Alvarez told the newspaper.
La Polar, which caters to middle- and lower-income customers, recently announced it will need to set aside nearly $900 million to cover bad loans made to its in-store credit-card customers.
The disclosure sent its share price plummeting, which in turn led to a week-long trading suspension and to various investigations with allegations of unsavory credit and accounting practices.
Source: http://online.wsj.com
The council, to be composed of the Finance Minister, the president of the central bank and sector regulators, will act as a coordinating task force in the event of a financial crisis, Finance Undersecretary Rodrigo Alvarez told the newspaper.
La Polar, which caters to middle- and lower-income customers, recently announced it will need to set aside nearly $900 million to cover bad loans made to its in-store credit-card customers.
The disclosure sent its share price plummeting, which in turn led to a week-long trading suspension and to various investigations with allegations of unsavory credit and accounting practices.
Source: http://online.wsj.com
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