Bank of Uganda (BoU) has approved a request by Afriland First Bank Uganda Limited to apply for Voluntary Liquidation in High Court.
In a notice to the public signed by the Bank of Uganda, Deputy Governor, Micheal Atingi-Ego, BoU approved this in the exercise of its powers under Section 98 (1) of the Financial Institutions Act, 2004 (as amended).
The Deputy Governor said Afriland First Bank’s decision for Voluntary Liquidation was an outcome of a strategic business review by the shareholders of Afriland First Group.
“Bank of Uganda hereby informs the public that Afriland First Bank Uganda Limited is a solvent Financial Institution,” Ego said, adding, “all depositors and other verified creditors shall be paid in full”.
He encouraged all depositors of Afriland First Bank Uganda Limited to withdraw their deposits.
He revealed that other verified creditors shall be paid in full by the Liquidator that has been appointed by shareholders of Afriland First Bank Uganda Limited.
Afrilnd First Bank Uganda Limited joined the Ugandan market in September 2019, however, the bank failed to hit the ground.
According to the bank’s audited financial results for the year ended 31st December 2021, Afriland First Bank (U) Ltd was an undercapitalized financial institution, with its core capital at Shs19bn in 2021, down from Shs26.75bn in 2020, below BoU’s minimum capital requirement of Shs25bn.