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Tropical Bank safe, says Central Bank

By Vision Reporter

Added 4th September 2011 03:00 AM

TROPICAL Bank is financially sound and will not be affected by the unfolding events in Libya, the Bank of Uganda (BoU) has said.

TROPICAL Bank is financially sound and will not be affected by the unfolding events in Libya, the Bank of Uganda (BoU) has said.

By Samuel Sanya
and Agencies

TROPICAL Bank is financially sound and will not be affected by the unfolding events in Libya, the Bank of Uganda (BoU) has said.

The Central Bank took measures to ring-fence the operations of the bank by appointing Ugandans to replace Libyan management in March this year.

This followed United Nations (UN) Security Council’s resolution to freeze all Libya government assets. Some of the asset have since been unfrozen.

“The public is hereby informed that the current events in Libya will neither affect the operations nor impact on the financial condition of Tropical Bank,” Emmanuel Mutebile, the BoU governor, said in a statement.

The Libyan Foreign Bank holds 99.7% of the Tropical Bank portfolio currently under the stewardship of the Central Bank. The Ugandan Government holds 0.3%.

Meanwhile, the European Union (EU) lifted sanctions on Libyan ports, oil firms and banks on Friday as foreign ministers met to discuss how to help the country’s transition from four decades of Muammar Gaddafi’s rule.

The lifting of the sanctions came a day after world powers meeting in Paris freed billions of dollars to help Libya’s new rulers rebuild the nation after 42 years of Gaddafi’s rule and six months of civil war.

In the Paris talks with Libya’s National Transitional Council, France, Britain and other powers vowed to keep up their military backing as long as needed, but said the focus was now on reconstruction.

French President Nicolas Sarkozy told a news conference that $15b would be freed out of the Libyan assets frozen under sanctions.

The figure included $3b the UN Sanctions Committee has approved for release in the US and Britain and 1.5b euros ($2.16b) in France.

It also includes 2.6b euros of assets in Italy, a 1b euros in Germany and 700m euros in the Netherlands.


Tropical Bank safe, says Central Bank

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