Call for institution's conversion

TO ENSURE the lasting sustainability of Ithala Bank, the KZN government must convert it into a lending financial institution, not a commercial bank.

- WILLEM PHUNGULA

This was the view of the University of KwaZulu-Natal-based financial expert, Dr Sanele Gumede.

The expert was reacting to the latest intervention by Finance Minister Enoch Godongwana, who has finally agreed to save the bank from liquidation by giving it a full guarantee, which secures the bank's depositors.

The guarantee was explained by the ANC provincial leadership as having taken the liquidation process off the table.

The party said that it convinced the minister to guarantee all depositors. Initially, the minister had agreed to guarantee depositors up to R100000.