Choice Bank Suspends Withdrawals From Deposit Accounts

[Mastan]

BELIZE CITY, Belize — Choice Bank Ltd. told accountholders today that it has been forced into a “liquidity-constrained position” and has suspended all withdrawals from deposit accounts, as well as other outbound payment activities.  

Choice Bank, the card issuer for several adult payment solutions, said that as it progresses through its current position, “the bank is confident that all its depositors, cardholders and creditors will be kept whole.”

“With a view to enable the bank to manage cash flows in an orderly fashion to work through the current liquidity situation, in the interest of depositors and other creditors as a whole, the bank has taken the decision in its view as a matter of necessity, with immediate effect, to temporarily suspend all withdrawals from deposit accounts with the bank and other outbound payment activities (save for payment of employees, suppliers essential for core operations, consultants and advisers) until the bank and/or its relevant regulatory authorities (as the case may be) are satisfied that such suspension is no longer required,” Choice Bank said.

Choice Bank said the Belize City financial institution maintains a strong balance sheet with total equity including paid up capital and accumulated retained earnings in excess of $26 million, a most recent reported regulatory capital ratio of 26.92 percent and statutory liquidity ratio of 74.59 percent.

Those ratios significantly exceed all statutory capital adequacy and liquid asset requirements, Choice Bank said.

“The liquidity challenges the bank currently faces is truly a short-term one. As it progresses through this process, the bank is confident that all its depositors, cardholders and creditors will be kept whole,” Choice Bank said.