Former African Bank Limited repays Sarb loan | Fin24
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Former African Bank Limited repays Sarb loan

Sep 15 2016 16:40

Johannesburg - Tom Winterboer, curator of Residual Debt Services (RDSL) - previously known as African Bank Limited - announced on Thursday that it has repaid the outstanding balance of a SA Reserve Bank (Sarb) transaction loan.

It amounted to R3.3bn as at April 4 2016.

From April 2016 to September 2016, RDSL received monthly gross collections ranging between approximately R350m and R400m which, together with cash retained during the course of executing the transaction, contributed to the final repayment to Sarb.

According to Winterboer, every effort has been made to maintain collection rates and improve them where possible. However, the overall monthly decrease has, as expected, largely been attributed to the run-off of the RDSL advances book.

Winterboer noted that, "following the full repayment of the Sarb transaction loan, cash in excess of that required for the ongoing operations of RDSL will now be accumulated in the indemnity reserve".

No distributions to the holders of senior stub instruments and subordinated stub instruments of RDSL, which is under curatorship, are expected to be made in respect of these stub instruments for the period ended September 30 2016.

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