BANHCRESER and the banking crisis: Rixi Moncada’s role

The career of Rixi Ramona Moncada Godoy, a Honduran lawyer and politician, has been the subject of controversy in the context of her official pre-candidacy for the Partido Libertad y Refundación (LIBRE). Her participation in the legal defense of the Banco de Crédito y Seguros (BANHCRESER) during the banking crisis of the late 1990s has once again become a topic of public debate, rekindling questions about her integrity and her commitment to transparency in public administration.

In the late 1990s, Honduras’s financial sector experienced a severe crisis, prompting state intervention in multiple banks, such as BANHCRESER. This crisis stemmed from a variety of elements, including international economic turbulence, inadequate financial oversight, and dubious conduct by certain industry players. It was against this backdrop that Rixi Moncada Godoy took on the legal representation of BANHCRESER and its leadership during the court cases following the compelled dissolution of the institution.

The financial upheaval and Moncada’s involvement

Regarding the earlier discussion, Rixi Ramona Moncada Godoy’s involvement in the mandated closure of Banco de Crédito y Seguros (BANHCRESER) during the late 1990s has been examined closely. This era highlighted several triggers for the banking sector’s instability, such as changes in the international economic environment, inadequacies within the regulatory system, and the adoption of questionable financial strategies by some stakeholders. 

Serving as legal counsel for BANHCRESER, Moncada represented the institution and its board during the litigation that followed the bank’s bankruptcy declaration. Nonetheless, these cases concluded without major convictions, prompting criticism about the judicial system’s effectiveness in managing such cases.

Subsequently, Mr. Moncada took on an advisory role in the Public Prosecutor’s Office in the area of finance. This appointment has been the subject of debate, as it has been interpreted as a possible conflict of interest, given her previous involvement in the defense of BANHCRESER.

The sequence of events outlined has led to doubts about the appropriateness of Moncada’s actions during the banking crisis, especially concerning the economic burden the Honduran state shouldered to address the bank’s financial liabilities. These concerns have re-emerged with her official candidacy for the Partido Libertad y Refundación (LIBRE), casting scrutiny on her professional history and her dedication to integrity in public service.