New restructuring plan activated:

FGC regaining customer confidence

Ramani KANGARAARACHCHI

The Finance and Guarantee Company Ltd (FGC) has fully regained customer confidence with the new restructuring plan and ninety percent of depositors have agreed to renew their deposits.

Chairman Merchant Bank of Sri Lanka PLC (MBSL) Janaka Rathnayake told Daily News Business that this is a great achievement and the company will restart all other business activities also shortly.

The company has made a positive progress with the restructuring plan within a short period of time by paying all monthly interests for deposits up to date and interests for deposits at maturity up to the second week of February.

Rathnayake said that the debt collection also has improved and hoped it will be further increased in the near future.

The Central Bank of Sri Lanka a few months back appointed the MBSL as the Managing Agent of the Finance and Guarantee Company Ltd (FGC) which was instrumental in developing a payment plan for FGC. This appointment gave the bank authority to manage the affairs of the company and exercise control over the Board of Directors of FGC.

The reason for the Central Bank to appoint the MBSL as Management Agents was because the directors of FGC had neglected their duties in running the business activities of the finance company.

As the Finance and Guarantee Company Ltd., has performed well, the Central Bank has appointed the MBSL as the Managing Agent of The Finance Company (TFC) too with effect from May 22. Lanka Puthra Development Bank will work closely with the MBSL to ensure the smooth transition of the managing agents’ functions and the strengthening of business operations of TFC for a period of two months.

The Central Bank is of the view that this procedure would enable The Finance Co. PLC to build on the restored confidence and return to its normal operations within a short period of time.