Government Announces Deposit Payment Dates for EFC Closure

EFC Uganda closes service centers to streamline its services
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The government has outlined procedures for compensating depositors affected by the closure of EFC Uganda Limited. The Bank of Uganda (BOU) will facilitate payment through the Deposit Protection Fund (DPF) for protected deposits up to sh10 million per depositor, while BOU, as the statutory liquidator, will handle the unprotected deposits.

Depositors with balances exceeding sh10 million are required to submit specific information within seven days to BOU’s Director of Financial Stability for payment processing. This information includes account confirmation details, alternative bank account information, national identification cards, contact numbers, and relevant documentation for companies.

Payment of unprotected deposits is scheduled to commence from February 19, 2024, following the verification of submitted information. Any inquiries regarding unprotected deposits should be directed to the Director of Financial Stability at BOU.

BOU’s decision to close EFC Uganda Limited on January 19 was prompted by its poor financial status and governance issues, leading to its placement under liquidation. The closure, carried out under the Microfinance Deposit-taking Institutions Act, revoked the company’s license and ordered the winding up of its operations.

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Depositors are assured of receiving their deposits in full, while other creditors are instructed to submit their claims within 30 days. Borrowers are required to continue servicing their loans at BOU offices, and individuals or companies holding EFC property are urged to surrender it to the Central Bank without taking legal action against the company.

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