Embattled African Bank gets bailed out
Thursday, August 14, 2014
AFRICAN Bank has been bailed out as the Reserve Bank said on Sunday it would pay R7bn for its bad loan book, which allows it to continue lending and safeguards its retail deposits.
It has been put under curatorship, which gives shareholders an opportunity to recover some of their investment by participating in an already arranged R10bn capital raising.
It has been split in two. The Reserve Bank has bought the “bad” bank while the “good” bank will continue to operate with the R10bn capital injection.