Finance Minister Enoch Godongwana assures depositors that their savings will be protected as the Prudential Authority seeks to liquidate insolvent Ithala Bank.
Finance Minister Enoch Godongwana has assured the public that the savings of Ithala Bank depositors will be protected, even in the event of the bank's liquidation. Speaking to SABC News at the World Economic Forum in Davos, Switzerland, Godongwana stated that a plan is in place to safeguard the funds of social grant recipients who utilize Ithala Bank .
The Prudential Authority of the Reserve Bank has filed an application with the Pietermaritzburg High Court for the provisional liquidation of Ithala Bank, citing the bank's insolvency. This move will directly impact the 257,000 depositors of Ithala Bank, resulting in the closure of their accounts to facilitate the ongoing legal proceedings. Godongwana emphasized his role as a protector of depositors, particularly those with savings between R100,000 and below. He announced a R2 billion guarantee to ensure their savings remain secure regardless of the bank's fate. Additionally, he revealed that another bank has stepped in to manage the transfers of the 76,000 affected social grant recipients. This bank is also diligently evaluating the remaining accounts held by Ithala Bank, with the entire process anticipated to take approximately four weeks
ITHALA BANK LIQUIDATION DEPOSITORS GUARANTEE SOCIAL GRANTS
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