Menu
RSS
Losses at Govt. bodies sore to Rs. 50 bn

Losses at Govt. bodies sore to Rs. 50 bn

The losses incurred by go...

MR tears into Govt

MR tears into Govt

This country has had its ...

SC directs AG to formulate rule

SC directs AG to formulate rule

The Supreme Court yesterd...

Lanka eyeing maid/caregiver jobs in S’pore

Lanka eyeing maid/caregiver jobs in S’pore

Demand for caregivers wil...

SL grows by 3.2% in 1Q

SL grows by 3.2% in 1Q

Sri Lanka grew by 3.2% ye...

Tourism told to plug talent shortage

Tourism told to plug talent shortage

As professional bodies ca...

Stocks extend losses, hit 14-month low

Stocks extend losses, hit 14-month low

Reuters: Sri Lankan share...

AG’s Dept. probes diplomatic mission costs

AG’s Dept. probes diplomatic mission costs

The Auditor General’s (AG...

Prev Next

770

ETI Finance depositors to be paid from 5 June: CB

ETI Finance depositors to be paid from 5 June: CB

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.
(FT)

back to top