Who is Julio Carrizosa Mutis?

• Julio Carrizosa Mutis is a Colombian businessman with an excellent reputation in Colombia.
• Carrizosa started his business career in the construction sector.
• He founded the construction company Industrial de Construcciones.
• At the time, the public entity called Land Loans Institute had a monopoly on construction.
• Carrizosa became a contractor with Land Loans Institute, rising to become its most important partner.
• He specialized in low-cost housing.

How did Carrizosa get involved with Granahorrar Bank?

• In 1972, Granahorrar Bank was owned by a conglomerate.
• The conglomerate was called Grupo Grancolombiano.
• The principal owner of the conglomerate was Jaime Michelsen Uribe.
• In the early 1980s, Julio Carrizosa Mutis became the major shareholder of Granahorrar Bank, meaning he was the owner.
• Carrizosa also owned other financial institutions. These included Davivienda and Ahorramás.

What was Granahorrar Bank like in the early 1980s?

• By the 1980s, construction and mortgages became the bank's main lines of business.
• Former Colombian President Belisario Betancur initiated a national housing policy.
• Consequently, this policy helped boost the bank's business.
• In the decade from 1988 to 1998, the bank had an annual growth rate of 45 percent.

What happened to the bank in the 1990s?

• In the 1990s, Colombia faced a serious crisis in its construction sector.
• The crisis resulted in debtors being unable to pay back their loans.
• The crisis affected the liquidity of several banks.
• In the case of Granahorrar Bank, conflicts arose between its shareholders.
• The media began to widely report on these conflicts.
• As a result, bank customers began to withdraw money.
• Because of this, the Carrizosa family decided to sell the bank. However, they were unable to do so.

Why does Granahorrar Bank no longer exist?

• The Colombian government expropriated (took over) the bank in 1998.
• This execution was a component of the government's economic policy.
• It is worth noting that Colombia was suffering through an economic crisis at the time.
• However, Granahorrar Bank was the only bank expropriated in Colombia.
• At the time, the bank was the country's third largest mortgage lender and the seventh largest financial institution in Colombia.
• After taking over the bank, the government refused to compensate Julio Carrizosa Mutis or any other shareholder. Consequently, Carrizosa lost the bank.
• In 2005, the Colombian government sold the bank to Spanish Bank BBVA.

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