Golden Key depositors get repayment plan

• Up to Rs. 2 m deposits to be repaid in a month, company assets to be liquidated for larger refunds

A fresh repayment scheme for Golden Key depositors was given the Cabinet nod yesterday. 

Depositors who had maintained security deposits up to Rs. 2 million in the Golden Key Credit Card Company will be repaid within a month, according to a Cabinet paper submitted by Prime Minister Ranil Wickremesinghe, in his capacity as Policy Planning, Economic Affairs, Child, Youth and Cultural Affairs Minister. 

“Once the depositors with Rs. 2 million security deposits are reimbursed, thereafter the assets of the company will be liquidated for further repayments,” the Cabinet paper noted.

The Finance Ministry will coordinate with the Treasury to gain funds for the repayment. The new Government’s Budget outlined proposals to grant relief to depositors of nonbank, inactive financial institutions by the supplementary Budget in 2015. Several meetings were subsequently held with depositors and the Finance Ministry before formulating the repayment plan.

Making submissions to the Supreme Court on Thursday, Deputy Solicitor General Viraj Dayaratna stated that the Government had agreed to grant 41% of the deposits of the depositors at Golden Key company.

Deputy Solicitor General Viraj Dayaratna said that Government agreed to grant those who have deposited Rs. 2 million or less – within a month – Rs. 2 million to Rs. 10 million – within two months – and to those who have deposited over Rs. 10 million, within a year.

The case was heard before a five-Judge bench in the Supreme Court. The Deputy Solicitor General added that the cabinet report on this decision will be submitted to court by 25 July.