COLOMBO (EconomyNext) – Repayments to depositors of t Golden Key Credit Card Company, a collapsed firm that took deposits illegally will be made according to a court mandated plan, Finance Minister Ravi Karunanayake said.
Karunanayake said the repayment plan had been in existence for several years but had not been implemented.
Some assets had already been identified to be liquidated on behalf of depositors.
Many depositors at a meeting in the Finance Ministry reached agreement to withdraw their legal actions in Supreme Court if the Central Bank takes over the repayments.
However depositors want a written undertaking on the repayment plan approved by the Monetary Board before withdrawing their cases with the case to be called again on June 04.
Asked whether the Central Bank will print money for a bailout of depositors, or use the identified assets, Karunanayake said at the time of paying the exact mechanism will be told.
"At the time of paying we will tell you how it is being done," Karunanayake said.
He said the government also wanted to go after assets that were not yet identified so that the total repayments would go up.
No shares would be given to depositors but they will be settled in cash he said.
Some depositors had also raised concerns saying there is an attempt by former Ceylinco Chief Lalith Kotelawala and senior officials to get back assets held to repay depositors by making a applying to court.
Karunanayake said such proceedings will be vehemently opposed.
Responding to questions from opposition leader Nimal Siripala de Silva in parliament, last week, Karunanayake said no budget allocations has been made to repay depositors, but a method would be devised in consultation with the Treasury and the Central Bank.
The Central Bank has come under fire earlier over bailout of Mercantile Credit without adequate collateral cover.