Singapore's Blue Summit Capital to buy Sri Lanka's ETI Finance assets
May 24, 2018 08:01 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Blue Summit Capital Pte Ltd, a Singapore based investment company is buying assets of Sri Lanka's troubled non-bank lender ETI Finance Ltd, State Minister for Finance Eran Wickremeratne said.
The firm will inject 75 million US dollars to ETI Finance and also take-over Swarnamahal Finance, another related troubled non-bank finance company.
Blue Summit Capital has already paid 32 million dollars from which 10 percent of the 35 billion rupees of deposit holders' funds will be repaid.
Another 10 percent will be repaid when the balance funds come.
The Central Bank has ordered directors of ETI Finance has been asked to inject a further billion rupees into the firm, Wickremeratne said.
The central bank has also ordered directors of ETI Finance not to sell their personal assets.
However the cash injections may not be enough to fully settle the depositors. If ETI Finance is liquidated, some deposit insurance funds will also be used to repay depositors of up to 600,000 rupees. (Colombo/May23/2018)