National Treasury guarantees R2.2 billion for Ithala bank depositors
The National Treasury has offered the R2.2 billion guarantee that has allowed Ithala bank to pay its customers their money, which has been inaccessible for almost a year.
In a statement, the National Treasury (NT) said that following consultations with the KwaZulu-Natal Provincial Government, it will make R2.2 billion available to enable the repayment of depositors of Ithala SOC Limited (“Ithala”).
NT stated that depositors have been unable to access their funds since January 2025, following the Prudential Authority ’s application to liquidate Ithala due to solvency issues and regulatory breaches. The liquidation case is still pending, and a date has not yet been set for the matter to be heard.
“The payout process will start on 8 December 2025. Depositors will first need to be verified to ensure that payments go to the correct recipients. Once verified, payments will be processed within approximately two days.
“First National Bank (FNB) has been appointed as the payout bank for Ithala depositors and will facilitate access to their funds. This arrangement is intended to ensure that funds are paid out in an orderly and secure manner,” it said.
It detailed how depositors will be contacted. It said depositors will be contacted by FNB. This communication must be received before visiting a branch for verification. Depositors will be contacted via SMS with details of the required documentation, which will include:
- an ID;
- proof of address; and
- proof of an alternate bank account where their money will be deposited.
“From 8 December 2025, depositors will be able to visit any FNB branch closest to them. Depositors will have until 2028 to claim their payout.
On loan repayments, it said, depositors with existing loans are still required to continue repaying their loans to the dedicated Absa account number: 4067762302.