KZN Treasury urges R2.4bn guarantee for Ithala
KZN Treasury has urged the national office to
finalise and approve an R2.4 billion loan to guarantee Ithala's deposits.
The state-owned entity is facing liquidation, with the matter argued in the High Court on Monday.
Representatives for the Reserve Bank's Prudential Authority and the Repayment Administrator told the court they would consider withdrawing the liquidation application if Ithala could prove that the depositor’s monies were safe.
KZN Finance MEC Francios Rodgers requested the loan from the National Treasury early this month while Ithala acquires its banking licence.
READ: Judgement reserved in Ithala liquidation matter
He said the Treasury's director-general still needs to facilitate a meeting with the budget council to approve the terms and conditions of the loan.
"We've also looked at acquiring a guarantee and a loan to be able to sort every single rand in the depositor's book," said Rodgers.
"That process is currently underway, and I think the DG of National Treasury needs to tell us exactly where he is on that process because the Minister of Finance has given us his assurance and his undertaking that we will assist Ithala in that particular matter."
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