The Central Bank announced yesterday that action will be taken to liquidate the five failed finance companies in accordance with applicable legal provisions.
The five failed companies are, Central Investments & Finance Ltd., ETI Finance Ltd., TKS Finance Ltd., The Finance Company PLC, and The Standard Credit Finance Ltd. The entities have had their licenses either canceled or suspended.
A report from the Central Bank established that the Advisory Committee for Revival of Failed Finance Companies revealed that the failed finance companies are not viable and consist of a number of policy and legal implications, which did not appear to be workable within the existing regulatory framework.
The Central Bank said given the present economic conditions, the committee does not expect any viable proposals to be received from prospective investors to revive these companies. “Under these circumstances, the only option concerning the five (05) failed finance companies would be to continue with liquidation proceedings/filing for liquidation,” the Central Bank said.
Further, the Monetary Board has decided to dissolve the Advisory Committee for Revival of Failed Finance Companies that was established in October 2021.