Corpbanca’s Funding Costs Rise on SMU Contagion, CEO Massu Says
Corpbanca profit may be cut as much as 5 billion pesos ($9.8 million) this year as funding costs rise on concern the Chilean lender faces losses tied to sister company SMU SA, Chief Executive Officer Fernando Massu said.
Institutional clients in Chile have demanded a premium of as much as 1 percentage point to lend to Corpbanca since mid-July, Massu said in an interview in his office in Santiago. SMU, which like Corpbanca is controlled by billionaire Alvaro Saieh, disclosed July 11 that it had breached the terms of its bond agreements.
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