Depositors welcome Pramuka reopening

THE depositors who were affected by the collapse of Pramuka Savings and Development Bank welcomed the decision by the Government to reopen the bank as a state bank before January 31, 2006.

The President of the Pramuka Bank Depositors' Association Palitha Gamage yesterday told the Daily News that the Association is planning to meet State Bank Development Minister Wijedasa Rajapaksa to discuss how the government is planning to address the grievances of the depositors.

The Minister told the Parliament recently that the Bank which was set to be liquidated would be reopened after acquiring its assets and responsibilities to the Central Bank.

He stated if the Pramuka Bank was liquidated the depositors will receive only 25 per cent of their deposited money and through the proposed move the depositors will be guaranteed of their full deposited money back.

The Chairman of the Pramuka Bank Restructuring Committee K.C. Vignarajah told the Daily News that the Committee would actively cooperate with the government in its efforts to help the depositors.

"However, we expect the Government's action will see that depositors are fully reimbursed," Vignarajah said.

Minister Wijedasa Rajapakse responding to a question raised by Jathika Hela Urumaya Parliamentary Group Leader Ven. Athuraliye Ratana Thera, on the liquidation of Pramuka Bank said the Government has taken this decision to keep the public confidence on the bank system which is considered as the backbone of country's economy.

"The Government is of the opinion that if erosion of public confidence on the bank system will have a negative effect. That is why the Government took this decision to reopen the Pramuka Bank as a State bank," he said.

The Central Bank suspended the business of Pramuka Savings and Development Bank (PSDB) on October 25, 2002.

The Bank Supervision Department of the Central Bank conducted a detailed examination of Pramuka to ascertain the true condition of the Bank's affairs. The Depositors' Association took legal action against the Central Bank's decision to suspend the operations of the Bank. -(CK)