By our reporter
DFCU Bank has confirmed that it’s undergoing a liquidity crisis.
While addressing a crisis media briefing at Kampala Associated Advocates Offices in Kampala, the Bank’s Chairman Elly Karuhanga and General Manager George Ochom revealed that DFCU has no cash necessary for lending, paying its customers and that clients applying for loans are getting less than what they apply for.
“Liquidity is very critical in any bank. Really it is critical in the interbank market because you know there are always payments that go for daily basis so in normal cause of banking business there is a lot of movements of funds,” said Ochom.
He further revealed that banks have to maintain certain liquidity ratios in order to be able to pay out their customers.
The development comes at a backdrop when CDC, DFCU’s second largest shareholder is rumoured to have sold its shares to another offshore without notifying Uganda Revenue Authority (URA).
Recently, CDCs Investment Director Irina Grigorenko wrote a confidential letter to Chairman Karuhanga announcing CDCs desire to exit the now messy and turbulent Uganda Banking economy which is faced with a low value shilling, increase on excise duty from 10-15%, taxes on mobile money and poor savings.
It should be noted that CDC seeks to evade taxes on profits it accrued as a shareholder in DFCU Bank and is silently floating another foreign Financial Shareholder in CranemerebAfrica Limited and responsAbility Investment AG to become the Strategic Investors to replace CDC and allow it to exit the market minus paying taxes to URA.