Customers who invested money in the failed Hindu Credit Union (HCU) will be paid before year’s end, Finance Minister Larry Howai said yesterday.
Speaking at the post-Cabinet news conference at the Office of the Prime Minister, St Clair, he said millions of dollars had already been paid to thousands of depositors and Government will be bringing legislation to Parliament to complete payments via bonds for depositors who had over $75,000 in the HCU.
This entire process should be wrapped up before the end of the year.
Howai said HCU was placed in liquidation in 2008 and at that time there were no arrangements made to meet the liabilities of HCU depositors.
The People’s Partnership Government, in 2011, decided that all payments would be made to the HCU depositors and shareholders, he added.
Those who had up to $75,000 would have been paid the full amount in cash and those over $75,000 will receive $75,000 in cash and the remainder in bonds with a maturity of one to 20 years.
Howai said HCU had approximately 147,000 depositors and some 19,000 have been paid $232 million to date.
He said those who had $75,000 and less comprised 146,000 and to date, some 17,871 have been paid $135 million.
Howai said many of the depositors had very small deposits in the HCU and despite advertisements to come collect their money, people have not come forward, possibly because of the size of the deposits.
He said some 15,000 people had over $75,000, some 1,289 have been repaid $75,000, amounting to $97 million to date.