The Bank of Uganda has authorized Afriland First Bank Uganda Limited’s request to apply to the High Court for voluntary liquidation (a self-imposed wind-up and dissolution of a company by its shareholders), according to deputy governor Michael Atingi Ego. (Afriland First Bank is leaving Uganda due to a lack of customers)
According to Atingi Ego, Afriland‘s decision to go into voluntary liquidation was the result of a strategic business review conducted by the shareholders, Afriland First Group. He did, however, state that because Afriland First Bank Uganda Limited is a solvent financial entity, all depositors and other verified creditors will be paid in full.
“All depositors of Afriland First Bank Uganda Limited are encouraged to withdraw their funds from the bank’s facilities. All other verified creditors will be paid in full by the liquidator designated by Afriland First Bank Uganda Limited’s shareholders “According to the deputy governor.
On September 12, 2019, Afriland First Bank was granted a commercial banking license class 1. However, because to the Covid-19 epidemic, the bank did not begin operations until December 1, 2020.
The bank had not made a single loan by the time its shareholders decided on voluntary liquidation. The bank now has liquid assets of Shs 31.458 billion and total liabilities of Shs 11.31 billion. Shs 958 million are deposits, while Shs 8.2 billion are borrowings from shareholders and other entities.
“The bank is a solvent institution, which means that its assets are sufficient to cover all of its liabilities.”
So the bank will be able to pay off all of its obligations in the near to medium term because, as the Bank of Uganda, our main concern during such an exercise (voluntary liquidation) is to ensure that the entity is solvent so that it does not leave any debts behind when exiting the market,” said Tumubweine Twinemanzi, the Central Bank’s director of supervision. (Afriland First Bank is leaving Uganda due to a lack of customers –Entertainment news, 2022)
