Vandell FS to revive CIFL
The Depositor’s Association of Central Investments and Finance PLC (CIFL)
is hopeful that there will be a settlement soon, as they not received
interest on their deposits, nor have they been able to withdraw their
deposits for the past three and half years.
The Association approved the appointment of Vandell Financial
Services SA of Germany to revive CIFL, which is unable to repay the
depositors at present.
“Vandell Financial Services has proposed to invest Rs. 5 billion in
CIFL and restructure the company. This investment would come in as a
Foreign Direct Investment (FDI) to the country and would reactivate the
operations of the company,” CIFL Depositor’s Association President K.
Wijayagunawardena said.
Speaking at the fourth Annual General Meeting of the CIFL Depositor’s
Association held on Monday in Colombo, he said that the Association
democratically selected the best option to go-ahead with the decision as
it would be of immense benefit to the country.
Although it comes under the supervision of the Central Bank it was a
mismanaged company and a failed financial institution. The CIFL could
not settle the monthly interest and matured deposits in a regular basis
from December 2012 and as of today majority of the depositors are
suffering for more than 43 months. As of December 2012, the public
deposit liability was stated as around Rs 3.5 billion.
- SJ |