The Bank of Uganda (BoU) has placed EFC Uganda Limited under liquidation, revoked its license, and ordered the winding up of its business.
Founded in 2012, the microfinance deposit-taking institution was liquidated due to significant undercapitalization and poor corporate governance.
According to Michael Atingi-Ego, Deputy Governor of the Bank of Uganda, the Deposit Protection Fund of Uganda will inform depositors of the arrangements that will be put in place to enable them to access all of their deposits.
“All other creditors are requested to submit their claims to the Office of the Director of Financial Stability, Bank of Uganda, within 30 days from the date of this statement. All borrowers of EFC Uganda Limited must continue to service their loan obligations by making payments at Bank of Uganda offices and branches,” he said.
He said any person possessing the property of EFC Uganda Limited should deliver it to the Bank of Uganda and hand it over to the Office of the Director, Financial Stability.
Under Section 69 of the Act, any person may take no steps to enforce any security over the property of EFC Uganda Limited (MDI), and no other proceedings or execution of legal process may be commenced or continued against the institution or its property.
