Mauritius: A new government-owned bank will replace Bramer Bank
The Bramer Bank had its licence withdrawn after the discovery of a scam.The Mauritian government has announced the creation of a new banking entity owned by the state - named National Commercial Bank (NCB) - to replace the Bramer Banking Corporation Ltd (BBCL).
The latter had its licence withdrawn with immediate effect by the central bank on April 2nd, after the discovery of a large scam.
Once all of Bramer Bank's assets and liabilities have been transferred, the new entity will offer "full banking services", said Finance Minister Vishnu Lutchmeenaraidoo to Parliament on April 7th.
Until the new bank receives its licence, which should happen by the end of the week, Bramer Bank will continue to offer its services through a temporary authorisation from the Bank of Mauritius, newspaper L'Express reports.
Mauritius Central Bank has decided to withdraw the licence of Bramer Bank after discovering a Ponzi of about 25 billion rupees (€637 million).
The Ponzi scheme is a fraudulent financial structure which consists in remunerating customer investments by funds provided by new entrants.