LAST PRIVATE URUGUAYAN BANK MERGES WITH STATE BANK
The board of directors of the last
entirely private Uruguayan bank, La Caja Obrera, has approved
its merger with a state-owned bank due to a severe financial
crisis, a bank statement said.
    It said the Caja Obrera would merge with the Banco Pan de
Azucar. The move was decided by the board of the Banco de la
Republica, the state bank that since 1985 has had control the
Banco Pan de Azucar.
    La Caja Obrera said the move aimed "at assuring its normal
and stable operation, with a full guarantee for the people
holding deposits as well as clients and employees."
    La Caja Obrera was the last entirely private Uruguayan
bank. The Banco Pan de Azucar after being taken over by the
Banco de la Republic in 1985 carried out a similar merger
operation with the Banco de Italia.
 Reuter
