DRC: BIAC will not go bankrupt, says its management

Apr 05, 2016

It said the bank is going through a temporary liquidity crisis.

BIAC is experiencing liquidity problems but its existence is not threatened, said the new management of the Democratic Republic of Congo's third largest bank.

It made the statement in response to several articles in local media announcing that the bank is about to file for bankruptcy after closing 17 branches in the capital and the departure of its director, Michel Losembe.

"Today, we are facing a temporary liquidity crisis but we are not in threat of bankruptcy," Anne Mbuguje, acting director of the BIAC, told RFI.

"The liquidity tension that we experience is related to the brutal suppression of a line of refinancing that we have received from the central bank for years," she added.

This line of refinancing of 40 billion francs (€38 million) has been cancelled as part of austerity measures announced by the government.

"The central bank and the government invite clients to continue to trust this large bank (...) We continue to do our best to preserve the stability of this particular bank and the stability of the banking system in general," said Governor of the Central Bank of Congo (CBC) Deogratias Mutombo on April 3rd.

He added that the government and the CBC will continue their discussions on the necessary means to help BIAC return to equilibrium.ADNFCR-2976-ID-801815931-ADNFCR