Home ECONOMY Collapsed Meridien BIAO Bank depositors to get cash

Collapsed Meridien BIAO Bank depositors to get cash

by biasharadigest

Collapsed Meridien BIAO Bank depositors to get cash

cash deposits
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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