The Bank of Uganda (BOU) has taken the decision to revoke the license of EFC Uganda Limited, a microfinance deposit-taking institution (MDI), and has instructed the institution to wind up its operations. The move comes as a result of BOU’s determination that the continuation of EFC Uganda Limited’s activities is detrimental to the interests of its depositors due to the institution’s failure to address significant undercapitalization and poor corporate governance.
Deputy Governor Micheql Atingi-Ego stated that the Deposit Protection Fund will communicate arrangements to depositors to facilitate access to their deposits. It was emphasized that all borrowers of EFC Uganda Limited are required to continue servicing their loan obligations by making payments at Bank of Uganda offices and branches.
BOU further advised that individuals in possession of EFC Uganda Limited’s property should deliver it to the Bank of Uganda and hand it over to the Office of the Director of Financial Stability.
Background on EFC Uganda Limited
EFC Uganda Limited, also known as EFC Uganda, is a microfinance deposit-taking institution in Uganda licensed and supervised by the Uganda Microfinance Regulatory Authority (UMRA). Originally opening in June 2012 as Entrepreneurs Financial Center Limited, it obtained an MDI banking license from the Bank of Uganda in November 2014, adopting the name EFC Uganda Limited. The institution focuses on financing micro, medium, and small enterprises, with assets of UGX 112.8 billion and shareholders’ equity of UGX 12.982 billion as of December 2021.
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