Cairo - Mubasher: Orascom Telecom Media and Technology (OTMT) said it will terminate ORABANK, an indirectly majority owned subsidiary of OTMT in North Korea.

OTMT management will start immediately the procedures of terminating the bank and officially advising the relevant authorities, said a press release.

As part of the termination process, all ORABANK cash and liquid assets (short term assets and

liabilities), including but not limited to loans, will be transferred to a designated subsidiary of OTMT in a manner that complies with all current OFAC sanctions and regulations, noted the press release.

In respect to the loans, OTMT noted that it would be transferred until maturity and no further banking operations will be carried out beyond this stage.

OTMT pointed out that the termination decision of ORABANK comes as an “Event of Force Majeure” because of the OFAC sanctions enforced on North Korea becoming increasingly complex and having delved in the territory of financial sanctions. 

OTMT assured that its associate Koryolink would continue its telecommunications operations, while complying with the OFAC sanctions.