ETI Finance depositors to be paid from 5 June: CB

Monday, 21 May 2018 00:41 - - {{hitsCtrl.values.hits}}

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.