Deposits lost stood at Sh781 million. FILE PHOTO | NMG
Account holders at Meridien BIAO Bank that collapsed two decades
ago will be paid part of their Sh781 million deposits by the Kenya
Deposit Insurance Corporation (KDIC).
In a notice
published in last Friday’s dailies, KDIC said Kenyans and companies
whose money remains holed up in the fallen lender should provide
evidence of their claims.
Companies that also had
pending bills for goods and services rendered to the collapsed bank
should also do the same within the next year.
“KDIC
will commence the third payment to all eligible depositors and creditors
of Meridien BIAO Bank (in liquidation) who have proved their claims.
All payments will be made via Real Time Gross Settlement(RTGS) to
accounts whose details have been provided,” it said.
According
to 1996 Hansard recordings, Meridien BIAO (Kenya) Limited suffered
liquidity challenges after its owners repatriated customer deposits to
its Belgium-based headquarters, making it difficult for its Kenyan
subsidiary to meet its obligations.
Deposits lost stood at Sh781 million, Sh736 million being
unprotected deposits and Sh45 million in protected deposits while its
loans as at April 15, 1996 when Central Bank ordered its closure, was
Sh224 million.
Saying it had hired debt recovery agents to pursue loan defaulters, KDIC said it had recovered Sh100.8 million as at June 2017.
The
deposits insurer has also announced a fourth payment to Reliance Bank
account holders and creditors to be made within the next year after an
18-year wait.
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