DBM: Deloitte Provides Restructuring

Deloitte's mission is to provide solutions to the DBM to make the institution more viable. But it was not until June that all measures will be taken, we said a source close to the case. One of the measures that the bank is in the process of implementing the Voluntary Retirement Scheme is (VRS) for employees aged 55 or more. "Employees are not required to subscribe to the VRS but this is the first solution that has been proposed," stated our interlocutor. Since the beginning of February, several meetings were followed between the direction of the DBM, Deloitte and officers of the state to try to break the bank of the impasse. 

Debts with the bank has accumulated, the first solution which management thought was to find a strategic partner but because the DBM employs over a hundred people and has many branches across the country, the management will wait before deciding on this measure. Already, it takes government approval and the final report from Deloitte, says one. 

Debts of the bank can be explained by the proposed plans to borrowers. Some plans involve loans repayable over two years and other repayable over five. However, when the borrower fails to meet its obligations, the bank often has no choice but to remove the debt. This, one suspects, reprente a significant financial burden. It also comes as the bank will be able in the coming months to repay its debts faster with the government and international banks. The reason: the benefits that DBM will reap in the coming months.