Breathing Space

Pramuka Bank got a short breathing space on Friday when the Appeal Court issued a stay order against the decision to liquidate the bank. Pramuka Bank got a short breathing space on Friday when the Appeal Court issued a stay order against the decision to liquidate the bank. The next Court hearing is set for November.

The Pramuka Depositors Association want the liquidation stopped, and is seeking damages from key officials in the Central Bank and the Monetary Board.

Pramuka Bank collapsed in 2002 under a mountain of bad loans, but its liquidation was held up after depositors went to Court, demanding that the Central Bank consider all options before winding it up.

The Central Bank decided to liquidate Pramuka in August this year after nearly two years of searching for potential investors to revive the failed bank.

Attempts by a consortium led by the Asia Capital and Richard Peiris Group to revive Pramuka Bank, failed after four percent of depositors didn’t sign up for the restructuring plan.

The depositors are now back in court appealing against the liquidation on the basis that the Central Bank did not follow pro