The Central Bank (CB) has continued the implementation of the second phase of restructuring of The Finance Company PLC (TFC) in order to further stabilise the company and move it to a profitable level, in terms of the provisions of the Finance Business Act No. 42 of 2011, the CB said in a media release.
Already, a new Board of Directors has been appointed and a new business model has been implemented by the TFC under which the company is expected to broad base and rationalise its business activities. At the same time, the Monetary Board has approved a long term concessionary loan facility from the Sri Lanka Deposit Insurance and Liquidity Support Fund in order to support the liquidity requirements of TFC as per the envisaged new business model, the CB said in a media announcement.
“In that context, an agreement pertaining to the liquidity support facility was signed on 15th December 2014 by Dr. S.H.A.M. Abeyratne – Chairman and Aruna Lekamge – Managing Director with the Central Bank. As a result, TFC is now expected to further consolidate its progress towards reaching a stable, sustainable and profitable level that would enable the company to attract new equity capital through a suitable future share issue,” the statement said.