BoT to pay larger depositors of FBME

DAR ES SALAAM: Deposit Insurance Board (DIB) said on Thursday that it is on a verge of paying 341bn/- to large depositors’ of ill-fated FBME Bank.

The Bank of Tanzania (BoT) revoked the business licence of FBME and placed it under liquidation in 2017 after it was accused by the US government of large-scale money laundering.

The amount will be paid to roughly more than 6000 large customers who had deposited 7.0m/- and above by the time the bank collapsed six years ago.

The central bank got the financial muscles after winning the case that grants it the official liquidator for the FBME.

DIB Managing Director Mr Isaac Kihwili told journalists after the training that the board is planning to announce the payments scheduled next month to the one-time customers of the lender.

“Finally we have become the official liquidator of the FBME thus customers who were not paid their deposits [especially larger depositors], will start to be paid,” said Mr Kihwili.

The BoT paid FBME customers with deposit not exceeding 1.5m/- based on DIB regulation in 2017. However, the board upped the maximum amount to 7.5m/- recently.

Mr Khiwili explained that the changes were in response to public outcry that the 1.5m/- used for almost a decade was too little and demotivating.

He said the current standard will be used automatic to banks, which will be running bankruptcy from February this year with deposits worth 7.5m/- and below.

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