Fina Bank and Access Bank have repossessed 44 passenger service vans belonging to the embattled transport company, International Express, after it failed to service loans it acquired to purchase the vehicles. International Express is a subsidiary of Atraco, a commuter transport association.
Access bank repossessed 29 vehicles while Fina Bank impounded 15. Eddy Ndinda, the team leader of the non performing loan department at Fina Bank, confirmed the repossessions.
“The company is not operating and as a bank, we were counting on its operation to recover the loan the company acquired to purchase the vehicles, hence repossession,” said Ndinda.
The company’s operations came to a standstill after Traffic Police last month started impounding the vehicles because they were operating without a license from the Rwanda Utilities Regulatory Authority (RURA).
The agency was required to pay Rwf11million every month, for three years, to service the loans acquired from both the banks.
When contacted, Ludovic Twahirwa Dodo, the president of Atraco, said he has nothing to do with the company.
“I sold my shares to other people, and at the moment, I am not concerned with whatever is taking place there,” said Twahirwa.
Over 130 employees of International Express went on strike in March over unpaid salaries and have up to now not been paid.