Depositors of the defunct Chase Bank who got access to the first half of the 75 per cent of their total deposits on January 1, will now access the remaining half within three years.
A source at a closed-door meeting between Central Bank of Kenya and Chase Bank depositors held yesterday revealed that the remaining 50 per cent of the 75 per cent will move to term deposits, earning seven per cent interest per annum,with access of 12.5 per cent every year for the next three years.
According to the source, money for both current and saving accounts will be available immediately. While current accounts have no restrictions, accessing the money in saving accounts will attract normal terms and conditions.
Payments for the first half of the 75 per cent of depositors money was split in two tranches of 25 per cent current account and 25 per cent for savings accounts, earning seven percent interest per annum.
This means that depositors who have been waiting since April 2016 when CBK put Chase Bank under receivership due to what the regulator termed as unsafe financial conditions will access a total of Sh57 billion of the Sh76 billion held in restricted accounts
Uncertainty over the remaining 25 per cent persists. Details from the meeting indicated that CBK and KDIC have promised to pursue all avenues, including selling assets and going after directors to ensure it is recovered.
Last week, CBK accepted a bid from Mauritius lender SBM Holdings to acquire 75 per cent of some assets and matched liabilities belonging to Chase Bank.
“The binding offer is accepted but still needs to be executed and operationalised. It will also ensure the transfer of staff and branches of the existing CBLR operations. Non moratorium depositors will continue to have full unrestricted access to their fund,’’ said CBK governor Patrick Njoroge.
SBMH is aiming at consolidating its presence in East Africa and at gearing up the operations of SBMK, with the ambition of becoming a tier 1 bank in Kenya in the medium to long-term.
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