Speaking in Parliament in Dodoma on Thursday, November 16, the deputy minister of Finance and Planning, Dr Ashatu Kijaji, said the compensation was made in compliance with section 39 of the Banking and Financial Institutions Act, 2006.“The government has no plan of victimising any customer. Debts will be collected and the money will be paid to every customer, depending on their deposits. The government is handling this issue carefully,” said Dr Kijaji.
She explained that the first step, according to the law, involved the deposit insurance compensation payment of not more than Sh1.5 million, depending on the deposit balance, when the bank was closed.“Compensation money comes from the Deposit Insurance Fund handled by the Deposit Insurance Board (DIB),” she noted.She said customers, who had deposits not above the compensation rate of Sh1.5 million when the bank was closed, would get all of their money.
“The money above that rate will be paid depending on what is obtained from the sale of properties, debt collection and the money deposited in other financial institutions,” she explained.
Dr Kijaji was responding to Special Seats MP Rukia Kassim Ahmed (CUF), who had wanted to know, among other things, the fate of customers of the bank after its licence was cancelled on May 8, 2017.
Ms Ahmed wanted to know about the government’s stand if the money from the sale of properties, debt collection and money invested by the bank in other banking institutions, won’t suffice.
She further queried about the decision of the Deposit Insurance Board (DIB) that even if a customer deposited his or her money in foreign currency in bank account, they would be paid in Tanzanian shillings at the rate the bank was liquidated on May 8, 2017.In her basic question, the legislator wanted to know what the fate of customers, who had deposited their money in FBME Bank, was after the Bank of Tanzania revoked its licence starting on May 8, 2017
“The money above that rate will be paid depending on what is obtained from the sale of properties, debt collection and the money deposited in other financial institutions,” she explained.
Dr Kijaji was responding to Special Seats MP Rukia Kassim Ahmed (CUF), who had wanted to know, among other things, the fate of customers of the bank after its licence was cancelled on May 8, 2017.
Ms Ahmed wanted to know about the government’s stand if the money from the sale of properties, debt collection and money invested by the bank in other banking institutions, won’t suffice.
She further queried about the decision of the Deposit Insurance Board (DIB) that even if a customer deposited his or her money in foreign currency in bank account, they would be paid in Tanzanian shillings at the rate the bank was liquidated on May 8, 2017.In her basic question, the legislator wanted to know what the fate of customers, who had deposited their money in FBME Bank, was after the Bank of Tanzania revoked its licence starting on May 8, 2017
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