‘Trustco must repay depositors, not BoN’

The Bank of Namibia (BoN) says it is Trustco Group’s responsibility to repay its former bank depositors, and not the central bank’s.

The group has lied in a statement in which it said depositors’ funds are guaranteed and held by the central bank, the BoN says.

Central bank spokesperson Kazembire Zemburuka says it remains Trustco’s responsibility to repay its depositors.

“This statement is misleading and devoid of all truth. The Bank of Namibia reiterates that Trustco Bank Namibia (TBN) holds depositors’ funds, and that it remains its responsibility to repay all depositors’ funds,” he says.

The BoN issued a statement last week on the discontinuation of TBN’s banking business.

Zemburuka says the central bank has directed TBN to present its deposit repayment plan by 27 August.

“The bank wishes to assure members of the public that the bank will endeavour to ensure depositors are not negatively impacted by the decisions taken by Trustco group and TBN,” he says.

TBN has previously been suspended by the BoN due to non-compliance with banking regulations.

Instead of addressing the concerns raised by the bank, Trustco decided to discontinue its banking business.

TBN has returned its banking licence to the regulator with immediate effect.