TFC receives Rs.6 bln bail-out credit line from Central Bank
View(s):The Finance Company PLC (TFC), the first finance company in Sri Lanka which went through a bad patch some years ago during the crisis affecting finance companies, has secured a new bail-out package from the Central Bank (CB).
This week the CB approved a Rs. 6 billion credit line to the company.
Dr. S.H.A.M. Abeyratne, TFC Chairman said that in June 2014, the CB decided to restructure the company by appointing a new board of directors, which consisted of experienced professionals. “As such when we were appointed a mandate was given to us which icluded strengthening the financial status of the company, the branch network and to turn around the company from the status that existed prior to June so that the TFC will become a profit making company yet again.”
“Before the approval, the company was requested by the CB to present an implementable business plan. Under the purview of Aruna Lekamge, TFC Managing Director, a short term business plan was created and implemented where the company was able to achieve all goals that were initially set out in the plan. The short term plan included testing the people of the company as well as the customer base, the economy, brand equity and the strength of the new management initiatives that were applied after June 2014. This showcased the capacity of the company to the CB which persuaded them to arrive at the decision of providing the required financial support for the company. When approving the credit line the CB did not just give us the money, but they studied our work programmes, inquired about what is happening in our workplace and have tested our short term business plan and they were convinced due our recent successes.
They realized that The Finance Company can go a further step by investing this money,” Dr. Abeyratne was quoted as saying in the statement.