Home / Front Page/ ETI Finance depositors to be paid from 5 June: CB

ETI Finance depositors to be paid from 5 June: CB


Comments / {{hitsCtrl.values.hits}} Views / Monday, 21 May 2018 00:41

Facebook

  • 10% of deposit liabilities worth Rs. 3.35 b and accrued interests of Rs. 1.4 b to be paid under phase one
  • Central Bank confirms $ 32 m received out of $ 75 m deal with buyers of ETI assets

The Central Bank said yesterday that depositors of troubled ETI Finance Ltd. (ETIFL) would be paid in a phased-out manner starting from 5 June 2018.



It said the Monetary Board, having considered the critical financial conditions of ETIFL and the possible implications to the financial system, decided to permit and facilitate ETIFL to sell its holding of shares in subsidiary and sub-subsidiary companies and investment properties, based on a proposal submitted by the Board of Directors of ETIFL, for a net amount of $ 75 million subject to compliance with the applicable laws and regulations.  



Out of $ 75 million, the buyer has transferred $ 32 million and ETIFL has received its Sri Lankan Rupee value of Rs. 5,017.6 million. Having considered the request of the depositors, ETIFL has been instructed to urgentlypay 10% of deposit liabilities which amount to roughly Rs. 3,350 million and the accrued interests of Rs. 1,400 million (approximately) as at end May 2018 using the sales proceeds received. 



The payment will commence on 5 June 2018. 



ETIFL has been instructed to pay a further 10% of deposit liabilities upon the receipt of the balance part of the sale proceeds ($43 million). 



ETIFL will shortly inform depositors of the details of the payment plan commencing on 5 June. 



The CBSL, while thanking all relevant parties for the assistance extended during the past four months, requested all depositors to be patient until the finalisation of the action plan with regard to ETIFL and to cooperate with the Central Bank-appointed management panel of ETIFL to implement the payment plan.


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

State of the economy of Sri Lanka

Saturday, 21 September 2019

I am not an economist nor do I profess to be an economic analyst. The views expressed in this presentation are those of a layman who has always been interested in the economic progress of Sri Lanka.


Premadasa, Père et Fils

Saturday, 21 September 2019

We are what time, circumstances and history has made of us. We are trapped in history. At age 77, I refuse to trap history in my mind. This essay is an obligation to history. Although J.R. Jayewardene introduced ‘Executive Presidentialism’, coer


Economy, business community and the Prime Minister

Friday, 20 September 2019

The speech made by Prime Minister Ranil Wickremesinghe as the Chief Guest of the Sri Lanka Economic Summit 2019 deserves very careful consideration by the country due to several reasons. This will no doubt be his last speech on economic policy to be


Sri Lanka needs to invest more on soft infrastructure

Friday, 20 September 2019

Developing countries like Sri Lanka will have to prepare for further downside risks in 2020 with the growing debt problems and the growth problems in Europe and the slowdown in Asia. Slower growth is already visible in weakening global trade and comm


Columnists More