Congo Central Bank Takes Over Afriland Amid Concern of Contagion
- Lender placed under temporary administration for 180 days
- Congo banking association says move should stabilize Afriland
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Democratic Republic of Congo’s central bank ordered that Afriland First Group SA’s unit in the country be placed under administration amid worries that credit problems at the lender could destabilize the financial sector.
Central bank Governor Malangu Kabedi Mbuyi announced the measure on June 20 in a communique and in a letter to Afriland’s shareholders, seen by Bloomberg. The central bank has been concerned about Afriland’s risk profile since a January audit, the letter said, and decided to step in to fix the situation, which “continues to degrade.”