Clients’ money safe, Trustco Bank says
Trustco Bank, who faces a liquidation application from the Bank of Namibia (BoN) in the High Court of Namibia, has issued a press release telling clients that their money is safe.
The governor of the BoN, Johannes !Gawaxab, issued a statement last night saying: “BoN’s board of directors is of the view that TBN is commercially insolvent at this time.”
“TBN maintains that it is commercially solvent at this time,” the instution, wholly-owned by Trustco Group Holdings (TGH), refuted in its statement.
“No client of TBN will need to use the Namibia Deposit Guarantee Authority, which provides a guarantee for only N$25 000 per depositor. All TBN client deposits are 100% backed by cash, and can be returned at the client’s request,” the bank said.
!Gawaxab in his statement last night said: “TBN continues to operate without an approved viable business plan and sufficient capital to carry out the plan, hich is vital for the viability and sustainability of the business and is expected of all industry players.
“Therefore, the primary purpose of the winding up application is thus to protect TBN’s depositors and creditors and to ensure that non-compliance with the applicable laws does not pose any further risks.”
According to TBN, the expected application for liquidation has not been served on the institution as of yet.
TBN announced on Monday that it brought a review application against the BoN) to set aside certain directives the central bank made against TBN, as well s declaring certain sections of the Banking Institutions Act of Namibia unconstitutional.
The governor of the BoN, Johannes !Gawaxab, issued a statement last night saying: “BoN’s board of directors is of the view that TBN is commercially insolvent at this time.”
“TBN maintains that it is commercially solvent at this time,” the instution, wholly-owned by Trustco Group Holdings (TGH), refuted in its statement.
“No client of TBN will need to use the Namibia Deposit Guarantee Authority, which provides a guarantee for only N$25 000 per depositor. All TBN client deposits are 100% backed by cash, and can be returned at the client’s request,” the bank said.
!Gawaxab in his statement last night said: “TBN continues to operate without an approved viable business plan and sufficient capital to carry out the plan, hich is vital for the viability and sustainability of the business and is expected of all industry players.
“Therefore, the primary purpose of the winding up application is thus to protect TBN’s depositors and creditors and to ensure that non-compliance with the applicable laws does not pose any further risks.”
According to TBN, the expected application for liquidation has not been served on the institution as of yet.
TBN announced on Monday that it brought a review application against the BoN) to set aside certain directives the central bank made against TBN, as well s declaring certain sections of the Banking Institutions Act of Namibia unconstitutional.
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