PMB takes over ABC Credit Card Company

eople’s Merchant Bank PLC (PMB) announced that they have singed an agreement to acquire 100% of the ABC Credit card Company.

“ABC Credit Card “ has started their operations on November 2006 under the ABC group as “A Truly Sri Lankan Credit Card” which is not linked to any franchise agents abroad. After the collapse of the “Golden Key Credit Card Company” public faith in finance companies and institutions have worsened.

As a result of this a few depositors of the ABC Credit Card company are trying to withdraw their deposits prior to maturity resulting in a heavy cash outflow which leads to an imbalance.

“There were many financial companies which got into trouble. Nobody came to rescue them, and in the end depositors had to suffer, since they never got paid. If this situation continues, depositors of this company will also not receive the payment they are entitled to.

To support the Government policy to protect the finance companies that are in troubled waters in the current economic crisis, the PMB thought of helping the ABC Credit Card Company and its depositors” said Chairmen of the PMB Thimira Rajapakse.

“We are determined that this course of action provides the greatest certainty for achieving the highest value for all shareholders and is in the best interest of investors and employees.” ae said. Assuring that the customers’ deposits are safe, he said, “the ABC has come to this position because of deposit withdrawals.

We started this process about four to six weeks ago, and we have spoken to a few depositors of ABC Credit Card Company and can already see a positive response. People are willing to renew their deposits with the new take over”.

That is a good sign and they have confidence. The depositors can call PMB and they will get a solution within the next two weeks after the verification process,” he said. We will have necessary funds to pay the interest of these depositors, Rajapakse said.

ABC Credit Card company have 12,000 credit card holders and the PMB expects to increase this amount to 25,000 within six months time. We will introduce a new name for the credit card, he added.