Buying Time

The Central Bank has extended the suspension of Pramuka by another six months, to give monetary authorities extra time to restructure the bank.
ldblquote The six months extension is subject to several conditions. But it gives the bank management the powers to recover loans,
dblquote Central Banks Deputy Governor, Manik Nagahawatte told Lanka Business Online.rn

rnThe Central Bank put a stop to Pramuka Savings & Development Banks activities late 2001, due to financial irregularities and mismanagement of depositors funds.rn

rnSince its suspension, Pramukas depositors have rallied various investors, in an attempt to revive the troubled bank. rn

rnThe most recent one put forward by a consortium led by the Asia Capital/Richard Peiris Group, is now before monetary authorities.rn

rnNatWealth Corp., who put together the complex proposal, had suggested the new investors infuse in Rs. 550 mn, while some of Pramukas depositors convert Rs. 1.2 bn of their funds into non-voting shares.rn

rnBut authorities

Notify of
Inline Feedbacks
View all comments