Kampala, Uganda | THE INDEPENDENT | The Bank of Uganda (BoU) on Friday, took a decisive step by utilizing its authority as outlined in Sections 72 (1) and 12 (1) (d) & (g) of the Microfinance Deposit-taking Institutions (MDI) Act, 2003, as amended, to officially initiate the liquidation process for Entrepreneurs Financial Centers (EFC) Uganda Limited.
As part of this action, the central bank has not only revoked the license of EFC Uganda Limited but has also issued a directive for the winding up of its operations, effective today, January 19, 2024.
The decision follows the Bank of Uganda’s assessment that the ongoing operations of EFC Uganda Limited pose a substantial threat to the interests of its depositors. Deputy Governor Atingi-Ego, in a statement from the Central Bank, highlighted the persistent challenges of significant undercapitalization and inadequate corporate governance within the institution, issues that have persisted despite previous interventions.
In light of this development, the Bank of Uganda, in collaboration with the Deposit Protection Fund of Uganda, will communicate the necessary procedures to depositors to ensure access to their funds. Concurrently, creditors are urged to submit their claims to the Office of the Director of Financial Stability at the Bank of Uganda within the next 30 days from the issuance of this statement.
While borrowers of EFC Uganda Limited are required to continue meeting their loan obligations, these payments should now be directed to the Bank of Uganda offices and branches. The central bank’s actions aim to address the challenges facing EFC Uganda Limited and safeguard the interests of depositors and creditors during the liquidation process.