Central bank to meet creditors of defunct banks
Mar 22, 2006
BANK of Uganda (BOU) on Wednesday started meeting creditors of the three banks that were closed in the late 1990s to brief them about the way that would lead to payment of money the banks owed them.
By Peter Kaujju
BANK of Uganda (BOU) on Wednesday started meeting creditors of the three banks that were closed in the late 1990s to brief them about the way that would lead to payment of money the banks owed them.
During a press conference in Kampala, Ben Ssekabira, BOU’s senior banking officer for supervision, said, “We are meeting creditors of the three banks, which were closed in the late 1990s to brief them about the progress of the liquidation, how much has been collected through the sale of assets and see the way forward regarding payment of their money. The money is not going to be given during the meetings that take place until Friday. However, it is a process that will lead to payment.â€
The International Credit Bank (ICB) was closed in 1998, Cooperative Bank 1999 and Greenland Bank 1999 after failing to meet BOU’s specifications.
Ssekabira said the Government was the biggest creditor because it had paid huge sums of money to the depositors even up to 100% of some depositors’ money as opposed to the sh3m recommended by the law.
He said the process was interim because liquidation of the banks was still going on.
Ssekabira said there were about 33 creditors for ICB, 170 for Cooperative Bank and 130 for Greenland Bank.
He said the bank’s shareholders would be paid from the residual claim after all creditors get their claims.
BANK of Uganda (BOU) on Wednesday started meeting creditors of the three banks that were closed in the late 1990s to brief them about the way that would lead to payment of money the banks owed them.
During a press conference in Kampala, Ben Ssekabira, BOU’s senior banking officer for supervision, said, “We are meeting creditors of the three banks, which were closed in the late 1990s to brief them about the progress of the liquidation, how much has been collected through the sale of assets and see the way forward regarding payment of their money. The money is not going to be given during the meetings that take place until Friday. However, it is a process that will lead to payment.â€
The International Credit Bank (ICB) was closed in 1998, Cooperative Bank 1999 and Greenland Bank 1999 after failing to meet BOU’s specifications.
Ssekabira said the Government was the biggest creditor because it had paid huge sums of money to the depositors even up to 100% of some depositors’ money as opposed to the sh3m recommended by the law.
He said the process was interim because liquidation of the banks was still going on.
Ssekabira said there were about 33 creditors for ICB, 170 for Cooperative Bank and 130 for Greenland Bank.
He said the bank’s shareholders would be paid from the residual claim after all creditors get their claims.