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Bank of Uganda Closes EFC Uganda Limited

Bank of Uganda Closes EFC Uganda Limited

by Max Pat
posted onJanuary 19, 2024
nocomment

Bank of Uganda (BoU) has closed EFC Uganda Limited, also known as EFC Uganda, a microfinance deposit-taking institution in Uganda. 

BoU in a statement released on Friday says they have withdrawn EFC Uganda's licence and liquidated the financial institution. 

"In exercise of its powers under Sections 72 (1) and 12 (1) (d) & (g) of the Microfinance Deposit-taking Institutions (MDI) Act, 2003 as amended, Bank of Uganda (BoU) has effective today, 19th January 2024, placed EFC Uganda Limited under liquidation, revoked its license, and ordered for the winding up of its affairs," the statement reads.

BoU says the decision was taken after determining that the continuation of EFC Uganda Limited’s activities is detrimental to the interests of its depositors due to the institution’s failure to resolve its significant undercapitalization and poor corporate governance.

"Bank of Uganda and the Deposit Protection Fund of Uganda will inform depositors of the arrangements that will be put in place to enable them to access all of their deposits," statement reads. 

All other creditors have also been requested to submit their claims to the Office of the Director Financial Stability, Bank of Uganda within 30 days from the date of this statement, while all borrowers will continue to service their loan obligations by making payments at Bank of Uganda offices and branches.

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