Shareholders Plough Shs 3.8Billion to Revive Struggling Tropical Bank

Shareholders have successfully resuscitated Tropical Bank Ltd which last year had become heavily undercapitalized.

The Libyan owned bank which has a shareholder’s equity of over 57Billion, in 2019 reported it was undercapitalized to a tune of 3.8bliion.

Following publication of its financials in December 2019, Bank of Uganda, which has closed a number of undercapitalized commercial banks over the past years, moved in, directing Tropical Bank to implement a Capital Restoration Plan

This morning, the Central Bank announced that Tropical Bank had indeed put in place and implemented this plan, and that its capital had been replenished.

“This directive was complied with before the end of March 2020 and during this time the shareholders injected additional capital amounting to 3.8billion,” said bank of Uganda’s AG Deputy Governor Adam Mugume.

The implementation of the submitted Capital Restoration Plan is ongoing and is in accordance with the timeline specified in Section 86 of the FIA (2004) which allows for up to 180 days for this process.”

Mugume reassured that the bank is currently “well capitalized” adding that the Central Bank would continue to protect depositors’ interests and maintain the stability of the sector.