Treasury allocates R2.2bn to repay Ithala depositors as payouts start 8 December

The Treasury’s move aims to stabilise the situation while long-term solutions are considered.

The National Treasury has announced that it will allocate up to R2.2 billion to facilitate the repayment of depositors of Ithala SOC Limited, with payouts officially starting on 8 December 2025. The intervention follows nearly a year of uncertainty for thousands of depositors who have been unable to access their money since January.

The decision comes after months of intensive intergovernmental coordination involving the Office of the President, National Treasury, and the KwaZulu-Natal Provincial Government, aimed at addressing the fallout from Ithala’s financial distress and regulatory non-compliance.

Background: Ithala’s Solvency Crisis

Depositors were locked out of their accounts in January 2025 after the Prudential Authority (PA) filed a court application to liquidate Ithala due to solvency challenges and a series of regulatory breaches. While the PA’s liquidation application remains pending, no hearing date has yet been scheduled.

The bank’s collapse created significant financial hardship for individuals, businesses and community organisations in KwaZulu-Natal, where Ithala had long served as a key provincial financial institution. The Treasury’s move aims to stabilise the situation while long-term solutions are considered.

How the Payout Process Will Work

According to Treasury, all depositors must undergo verification to ensure accurate and secure payouts.

Key details include:

• FNB has been appointed as the payout bank for Ithala depositors.

• Once verified, payments will be processed within approximately two days.

• Depositors are not required to open an FNB account. Funds may be transferred to any bank of their choice.

• No payouts will be made at Ithala branches, which remain non-operational for this purpose.

• Depositors will receive an SMS from FNB, detailing required documents:

  • South African ID

  • Proof of address

  • Proof of an existing bank account for funds transfer

From 8 December 2025, depositors can visit any FNB branch countrywide for verification and payout initiation.

Depositors will have until 2028 to claim their funds, providing a wide window to accommodate those living in remote or rural areas.

Loan Repayments Must Continue

National Treasury emphasised that customers with outstanding Ithala loans must continue making payments. All repayments should be directed to the dedicated Absa account number 4067762302, which has been set up to manage loan collections.

Ensuring a Secure and Coordinated Process

Treasury said it is working closely with the KwaZulu-Natal Provincial Government and the Prudential Authority to ensure the payout process is smooth, transparent and secure. The authorities are also assessing long-term policy lessons from the Ithala crisis, including issues related to governance, provincial financial institutions, and tighter oversight to prevent similar incidents in future.

The Treasury reiterated its commitment to safeguarding depositors, maintaining financial stability, and restoring confidence in the regulatory system.