Consolidated Bank borrowed Sh1.12 billion from Central Bank of Kenya (CBK) to address liquidity shortage by the close of last year, showing the extent of cash crunch in the State-owned lender that is now seeking a bailout to pay its bond creditors.

The money was borrowed in three tranches in form of repurchase agreements, commonly called repos.

This was borrowed at nine percent, with the bank paying interest of Sh105.86 million to the CBK for the repos during the 2018 financial year.
Between December 13, last year and January 10, 2019 the bank borrowed Sh560 million
Another repo of Sh320 million was taken between December 14 last year and January 11 this year.
Another one of Sh240 million had been taken earlier.
The repos were secured against Consolidated Bank’s Treasury bonds worth Sh1.4 billion, which represented 64 percent of the lender’s total stock of Treasury bonds and bills worth Sh2.19 billion.

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Good to see people are going to get their money back.