Bank of Uganda (BoU) has announced the liquidation and revocation of EFC Uganda Limited’s license.
EFC, a microfinance institution that was licensed and supervised by the Bank of Uganda has been ordered to wind up its services across the country.
According to a letter released by the Bank of Uganda Deputy Governor, Mr Michael Atingi-Ego, the Bank exercised its powers under Sections 72 (1) and 12 (1) (d) & (g) of the Microfinance Deposit-taking Institutions (MDI) Act, 2003 as amended.
“Bank of Uganda (BoU) has effective today, 19th January 2024, placed EFC Uganda Limited under liquidation, revoked its license, and ordered for the winding up of its affairs,” Atingi Ego said.
Ego says the move was taken after BoU determined that the continuation of EFC Uganda Limited’s activities is detrimental to the interests of its depositors due to the institution’s failure to resolve its significant undercapitalization and poor corporate governance.
The Bank is yet to inform depositors on how to access their deposits, urging creditors to submit their claims to the Office of the Director of Financial Stability within 30 days.