Old African Bank Settling Up Debts With Investors
African Bank Settling Debts
Back in 2014, after some reports of reckless lending and the sudden exit of senior management, African Bank collapsed.
In the process of rescuing the sinking ship, the bank was split into “old” African Bank also called Residual Debt Service Limited and “new” African bank (which had the same branding, same offices, same staff).
Most of the good debts that people were actually paying each month were moved to the “new” African Bank, leaving RDS with some of the less reliable and bad debts.
At the time, RDS set aside R500 million as insurance money.
Paying Bank the Money
RDS has slowly been paying off its own debts.
This month, old African Bank, (Residual Debt Service), decided to pay out an extra R600 million to some of its investors.
It is made up of the R500 Million they originally set aside as insurance and an additional R100 Million from their savings.
This brings the total amount they’ve paid out to R8.45 billion.
The plan now is to keep paying money to certain investors every six months.
