Central Bank tells Swarnamahal Finance to immediately pay 10% of deposit liabilities

Upon the requests of depositors, the Central Bank yesterday said it instructed Swarnamahal Financial Services PLC (SFS) to urgently pay 10 percent of deposit liabilities commencing July 10 (yesterday).
Both SFS and its parent, ETI Finance Ltd., have run into difficulties and currently operate under the supervision of the Central Bank.

To settle the deposit liabilities, ETI Finance board of directors has entered into a deal with a joint venture company between Singapore-based Blue Summit Group and its local partner Ben Holdings, to dispose ETIFL’s shares in its subsidiary and sub-subsidiary companies and investment properties for US $ 75 million. 

A portion of that money has already come and ETI Finance has already completed paying 10 percent of its deposit liabilities to existing deposit holders. 

With regards to SFS, the Central Bank said a payment plan will be informed to SFS depositors shortly, and requested depositors to be patient until business activities of the firm are restructured.