Collapsed Imperial Bank Depositors to access part of deposits through NIC Bank

Imperial bank becomes Nic bank
Collapsed Imperial Bank Limited (IBL) will soon access their money deposits through NIC Bank.According to today's Central Bank of Kenya (CBK) press release,Kenya Depositors Insurance Corporation (KDIC) has gone into a joint agreement with NIC Bank to effect deposit access by IBL depositors who had less than kes2.5million in their bank accounts before the lender was placed under receivership.Each account holder will receive a total of kes1.5million in a lump sum and the rest in bits.

A step to safeguard the interest of IBL creditors and depositors and the general public was taken as a result of the failure by the bank's shareholders to provide convincing information regarding to reopening and assumption of services delivery.

Imperial Bank's then clients will soon have  smiles on their faces when the deal between KDIC and NIC Bank will be practical as customers with verified accounts holding more than kes2.5million shillings will also be taken care of in the near future.

The joint agreement says;

  • NIC bank will act as the asset and liability consultant for IBL,thereby undertaking on behalf of KDIC an assessment of the quality of the IBL assets and liabilities, support the recovery of IBL loans and guide in staffing.
  • NIC will disburse kes1.5million to each remaining depositors as soon as the High Court suspension of payments to depositors is lifted,hopefully on 4th July.This will see 45700 depositors fully paid.
  • NIC will assume IBL assets ,liabilities and verified deposits as they are disposed by KDIC.
  • NIC will resume the recovery of IBL loans.
  • KDIC will retain and manage all IBL assets not disposed.
The CBK and KDIC was happy with the patience that the IBL depositors has shown.

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