The tax authorities in Luxembourg have placed in bankruptcy MyBucks, the mother institution of MyBucks Malawi, a commercial bank.
Afristrat which owns the company announced in February that the company had been placed under liquidation by the Luxembourg tax authority or l’Etat du Grand-Duché de Luxembourg.
“Whilst MyBucks had previously made representations in court in order to prevent MyBucks from being placed in bankruptcy, the court of Luxembourg has concluded the matter and upheld the bankruptcy application,” Afristrat said in a statement.
In another statement on 23 February, Afristrat said a court-appointed Receiver had assumed full control of MyBucks.
“In accordance with International Financial Reporting Standards, Afristrat will no longer have control of MyBucks and will therefore be deconsolidated and rerecorded at its fair value as an investment associate in Afristrat’s financial results,” the company said.
Afristrat, however, claimed that its assessment on the impact of MyBucks’ bankruptcy on its financial results had concluded that the bankruptcy would “not have a material impact”.
MyBucks is an African-focused fintech company which offers unsecured consumer loans, banking solutions and insurance products to customers through its three brands GetBucks, GetSure and GetBanked.
The company experienced exponential growth since its inception in 2011, becoming operational in nine African and two European countries.
In Malawi, the company operates as MyBucks Banking Corporation Limited which was licensed on 13th May, 2014 and commenced its operations on 24th July, 2015. MyBucks Malawi is 100% owned by MyBucks S.A, whose Head Office is in Luxembourg.
The bank is a licensed commercial bank and is regulated by the Reserve Bank of Malawi.
Neither MyBucks Malawi nor the Reserve Bank of Malawi has commented on the bankruptcy and the implication that it has on the Malawian bank.