CB Governor expresses optimism of GK disbursements by Christmas

Imprest from Treasury expected by Monday


by Suresh Perera

The Treasury is expected to send the imprest by tomorrow (Monday) for the reimbursement of holdings of Golden Key (GK) depositors under the second phase, Central Bank Governor Arjuna Mahendran said.

"We were optimistic of receiving it last Friday or by Monday, the latest", he told The Sunday Island.

In what’s certainly good news to long-suffering investors, Governor Mahendran expressed hope that the disbursements could be done by Christmas.

The proposed second round, for which around Rs. 4 billion is required, will see reimbursements to 2,700 depositors in the Rs. 2 – 10 million segment, who will receive 41% of their holdings.

"We have already printed 1,030 cheques of depositors in the Rs. 2 – 3 million category and is awaiting the fund transfer to sign and mail them", says Dinesh Perera, GK’s Chief Executive Officer (CEO).

The process of disbursements to all depositors under this sector can be completed within three weeks, he assured. "We can kick start the repayments no sooner the funds are transferred to the GK kitty".

The Treasury earlier released Rs. 544.8 million to meet the financial commitment under the initial phase, where 41% of holdings up to Rs. 2 million were reimbursed.

Under the third and final stage, investors with depositors over and above Rs. 10 million are expected to be repaid within one year. But, the time frame could not be adhered to as agreed under the repayment formula approved by the Supreme Court due to an inordinate delay on the part of the Treasury to implement the second phase.

Another Rs. 4 billion will have to be injected by the Treasury to meet commitments under the final round. The monies advanced by the government for reimbursements are expected to be recovered through the liquidation of assets of GK and its subsidiaries.

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