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EFC Uganda license revoked by BoU

EFC Uganda license revoked by BoU

(Courtesy photo)

The Bank of Uganda (BoU) has exercised its authority under Sections 72 (1) and 12 (1) (d) & (g) of the Microfinance Deposit-taking Institutions (MDI) Act, 2003, as amended. The regulatory body has placed EFC Uganda Limited under liquidation, revoked its license, and ordered the winding up of its affairs, effective immediately.

The move comes as a result of the Bank of Uganda’s determination that the continued operations of EFC Uganda Limited pose a threat to the interests of its depositors. The primary concerns cited by the regulatory body include the institution’s significant undercapitalization and poor corporate governance, issues that EFC Uganda Limited has reportedly failed to address adequately.

Deposit Protection Fund of Uganda will work in conjunction with Bank of Uganda to communicate arrangements for depositors to access their funds. All depositors are urged to stay informed about these arrangements as they unfold.

Claims submission for creditors

Other creditors of EFC Uganda Limited are advised to submit their claims to the Office of the Director Financial Stability, Bank of Uganda, within the next 30 days from the date of this announcement. This will be a critical step in the liquidation process as the authorities work towards the resolution of the institution’s financial affairs.

Loan obligations for borrowers

All borrowers of EFC Uganda Limited are instructed to continue servicing their loan obligations by making payments directly at Bank of Uganda offices and branches.

Property handling

Individuals in possession of property belonging to EFC Uganda Limited are required to deliver it promptly to Bank of Uganda and hand it over to the Office of the Director, Financial Stability.

Legal implications

In adherence to Section 69 of the Act, no steps are permitted to be taken by any person to enforce any security over the property of EFC Uganda Limited (MDI). Additionally, no legal proceedings or execution of legal processes may be initiated or continued against the institution or its property.

For all inquiries related to this development, individuals and stakeholders are encouraged to address their concerns directly to the Bank of Uganda.

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