Regional

The liquidators of Bank of Credit and Commerce International (BCCI) have announced the payment of a third dividend to the bank's creditors. A total in excess of $1,000 million, or 14 per cent of the estimated total claim of $9,000 million, is to be distributed to the 70,000 creditors worldwide, many of which are in the Middle East.

The first two dividends paid by the liquidators amounted to $4,500 million, or about 46 per cent of the total claims made by creditors of the bank following its closure in 1991.

The liquidators, Deloitte & Touche, say they are continuing to pursue assets but the bulk of future payouts will be funded by the fruits of negligence and misfeasance legislation against BCCI's supervisors and business partners such as the Bank of England (central bank) and Bank of America (MEED 11:2:00)

It is understood that the creditors will make at least one more interim dividend before a final dividend is paid. It is expected that up to 75 per cent of creditors claims will be met.