Half the staff at The International Banking Corporation (TIBC) were paid off yesterday.

A total of 21 staff were handed their notice yesterday at the bank, leaving only 20 employees at the financial institution which was put into administration by the Central Bank of Bahrain (CBB).

'We can confirm as administrators of TIBC that 21 employees were yesterday handed notices cancelling their employment contracts with TIBC,' a spokesman for the London law firm appointed by the CBB, Trowers & Hamlins said.

'Following consultation with the Labour Ministry, each employee was provided a financial package due to them according to the terms of Bahraini labour law.

'This is an unfortunate, but necessary part of the administration process given that the bank is not currently trading. We remain committed to concluding our work as administrators of the bank as quickly as possible.'

The administrator at Awal Bank, Charles Russell, has appointed UK restructuring agents, Baker Tilly, to assist it in the administration process at the bank which had a book value of $5 billion.

Both banks ran into trouble because of their exposure to the Saudi Saad Group and Ahmad Hamad Al Gosaibi & Brothers.-TradeArabia News Service