How NIC Will Offer Imperial Bank Depositors Access To Their Money

 

Imperial Bank Limited (IBL) Depositors Can Now Access A Portion Of Their Money.

This follows an announcement by the central Bank of Kenya this morning that NIC Bank will provide the depositors access to their money in a structured manner.

With the endorsement of the CBK, the Kenya Deposit Insurance Corporation (KDIC) effected a joint agreement with NIC Bank Limited (NIC) which apart from offering depositors access to their cash; they will safeguard the interest of IBL’s depositors and creditors, and in the wider public interest.

In addition to the above,NIC will undertake on behalf of KDIC an assessment of the quality of IBL’s assets and liabilities, support the recovery of IBL’s loans, and provide guidance on other assets and on staffing.

A maximum of Ksh.1.5 million each is also expected to be disbursed to the remaining IBL depositors, as soon as the High Court’s suspension of payments to IBL depositors is lifted.This is expected to take place  on July 4th this year.

This will be subject to account and identity verifications that were conducted previously.

 

It is also expected that depositors will be granted access to their money in a structured manner to about 40 percent of the remaining amount of verified deposits above Ksh.2.5 million, which would bring the cumulative pay-out ratio for all verified deposits to an estimated 59 percent.

The decision to bring NIC bank on board comes after Imperial bank Limited shareholders failed to provide adequate assurances to implement a proposal that would enable the immediate reopening of IBL and resumption of normal activities for its customers.

The bank has been under receivership for the past 7 months since October 2015 due to, amongst other reasons, irregularities and malpractices in the Bank which exposed depositors, creditors and the banking sector to financial risk.

In the meantime, KDIC will retain management and control of all IBL assets and liabilities that it will not have been disposed of even as forensic audits at imperial bank continue.

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Muhatia
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