Central Bank of Rwanda has directed the immediate closure of CAF-Isonga a financial institution based in Muhanga district.
The closure stemmed from unending complaints from the clients of this bank, misappropriation and financial mismanagement of the bank.
Caisse des Affaires Financières Isonga Ltd is a registered financial institution recognized by the central bank.
CAF-Isonga has been given only two months (60 days) to compile a list of its subscribers and also solve all complaints from its members.
CAF isonga is said to have issued loans worth Rwf350million that have not yet been fully serviced. The Central Bank also says this Caf-Isonga owes its subscribers a total Rwf250million.
Dr. Monique Nsanzabaganwa the Deputy Governor of the Central Bank told journalists that subscribers who had less that Rwf500,000 will be refunded fully while those with amounts above that figure will receive their cash in installments depending on how the arrears will be recovered.
However she warned that those who had picked loans from Caf-Isonga should not think they will just walk away without paying back.
“Police and other government agencies are going to take up this matter to ensure that all these monies are recovered those who sought loans,” she warned.
The Deputy Governor also said the CAF-Isonga staff will be laid off in accordance with the laws of the country.