Ithala faces liquidation amid insolvency concerns

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Ithala faces liquidation amid insolvency concerns
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Ithala's provisional liquidation may result in the closure of 257 000 depositors’ accounts while legal proceedings are under way

Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.Ithala's provisional liquidation may result in the closure of 257 000 depositors’ accounts while legal proceedings are under way.

Ithala was never granted a banking licence, but rather an exemption by the finance minister, Enoch Godongwana, to operate as an entity to receive deposits while it regularised its operations. “The final exemption notice lapsed on 15 December 2023, with Ithala failing to meet all the conditions outlined in it,” the Reserve Bank said.

In a statement issued on 17 January, Ithala said the Prudential Authority initiated the liquidation proceedings before any formal liquidation order was issued by the courts.

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