Finance: Uganda takes control of Tropical Bank.

Position:BRIEFS - Brief article

The Central Bank of Uganda (CBU) has taken control of Libyan-owned Tropical African bank to protect it from the UN sanctions being imposed on the assets of the North African country, according the CBU's governor, Emmanuel Tumusiime-Mutebile. Tropical Bank is in the vanguard of Islamic banking in Uganda, and was expected to become the first institution to offer Islamic financial products once the country's parliament ratified legislation that would regulate Islamic banking in the East African nation.

The takeover follows UN-imposed travel bans and asset freezes on Libyan leader Muammar Gaddafi and his family members. Various countries have extended these sanctions to assets owned by the government of Libya.

Prior to CBU's move, Tropical Africa was jointly owned by the Libyan and Ugandan governments, with 99.7% held by the Libyan Arab Foreign Bank and 0.3% owned...

To continue reading