Sri Lanka Savings Bank to rescue Pramuka depositors
The Ministry of Finance will be launching the Sri Lanka Savings Bank on March 10th in a bid to rescue depositors of the failed Pramuka Bank, according to Treasury Secretary Dr. P. B. Jayasundara yesterday.
He pointed out that the Bank would be ready to pay depositors who suffered losses due to the mismanagement of Pramuka Bank up to Rs 100,000 each after June 3rd adding that it would in no way be a burden to the budget.
There are 14,324 individual depositors who have suffered however, 12,517 of these depositors will be fully compensated upon request at present according to the Ministry. “We have certain assets and we have managed to bring the Bank of Ceylon out of its US $10 billion shortage in recent times,” adding that they had a Rs 1.5 billion Letter of Comfort that would show that they had capital of the equal amount.
Furthermore, it was said that the Rs. 700 million liquidated assets from Pramuka bank were to be also used in paying back the depositors.
It was decided to examine ways and means of establishing a new bank with the responsibility of replenishing those deposits and recovering the loans given by Pramuka Bank without reestablishing the bank itself.
Mechanisms are in place to commence business in the near future, which includes opportunities to invest in Treasury bills and Sovereign Bonds. The Finance Ministry is also encouraging the populace to invest in the Savings Bank since as it is a fully State funded institution can guarantee a safe and secure deposit.
The Ministry of Finance will be launching the Sri Lanka Savings Bank on March 10th in a bid to rescue depositors of the failed Pramuka Bank, according to Treasury Secretary Dr. P. B. Jayasundara yesterday.
He pointed out that the Bank would be ready to pay depositors who suffered losses due to the mismanagement of Pramuka Bank up to Rs 100,000 each after June 3rd adding that it would in no way be a burden to the budget.
There are 14,324 individual depositors who have suffered however, 12,517 of these depositors will be fully compensated upon request at present according to the Ministry. “We have certain assets and we have managed to bring the Bank of Ceylon out of its US $10 billion shortage in recent times,” adding that they had a Rs 1.5 billion Letter of Comfort that would show that they had capital of the equal amount.
Furthermore, it was said that the Rs. 700 million liquidated assets from Pramuka bank were to be also used in paying back the depositors.
It was decided to examine ways and means of establishing a new bank with the responsibility of replenishing those deposits and recovering the loans given by Pramuka Bank without reestablishing the bank itself.
Mechanisms are in place to commence business in the near future, which includes opportunities to invest in Treasury bills and Sovereign Bonds. The Finance Ministry is also encouraging the populace to invest in the Savings Bank since as it is a fully State funded institution can guarantee a safe and secure deposit.
