CIFL depositors present Rs. 3.5 bln bailout plan
Depositors of the failed Central Investment and Finance Ltd have submitted a proposal to the Central Bank (CB) to revive the company under a Rs. 3.5 billion bailout package. W. Gunawardene, President of the CIFL Depositors Association (CIFLDA) told the Business Times that the money would be obtained from state banks as a long term loan against the recoverable assets of CIFL based on the KPMG Audit.
The proposal came amidst accusations that the CB was slow in finding a quick solution to revive this crisis-ridden finance company. Mr. Gunawardene said the CB had compelled them to withdraw their Supreme Court Case on the promise that the banking regulator would find investors to revive the CIFL but the CB has been silent on the matter so far.
He said that they had a discussion with CB officials headed by Ms K.M.A.N. Daulagala, Director, Supervision of Non-Banking Financial Institutions, on June 17 on the matters related to the misappropriation of public funds and money laundering of CIFL based on the ‘B’ Report submitted by the CID on a complaint made by the CB. He said their proposal was not taken up at the CB Monetary Board meeting on June 25 but would be taken up at its next meeting on July 10.