The Bank of Zambia says Intermarket Banking Corporation which was taken over by the Central Bank in November last year is now solvent after shareholders decided to restructure the bank.
Depositors who have not been able to have access to their funds will however have to wait for the next course of action from the Central Bank.
On November 28th, the Bank of Zambia took over Intermarket Banking Corporation after it determined that the bank was not solvent and is not in a position to meet its obligations as they fell due.
But in a statement released by Bank of Zambia Deputy Governor-Operations Bwalya Ng’andu, Intermarket Bank is now solvent.
“While IBA was indeed insolvent at the time of possession, the Bank received a proposal from shareholders to restructure IBC so as to restore its solvency and operations. The Bank reviewed the restructuring proposal and business plan as submitted by shareholders and concluded that t provides a viable basis for the successful restricting of IBC,” Dr Ng’andu said.
He said as a result of financial commitments by shareholders and a new equity partner, the Statement of Affairs of the Assets and Liabilities shows that IBC is now solvent.
Dr Ng’andu said the Bank has therefore decided to restructure IBC in line with Section 84B (a) (i) of the (BFSA).
“Depositors, creditors and the general public will in this regard be advised on the further steps to be taken by the Bank in the process of effecting the restructuring of IBC in line with the relevant provisions of the BFSA,” he said.
??????????????? not sure if a financial institution like IBA can resurrect.
”and a new equity partner”…with this yes it can resurrect. The only problem will be depositor confidence! I can fore see a run on the bank when it opens to the public to access their funds! The Meriden Bank saga comes to mind!
Name change maybe
What was the point on IBC acquisition by Central Bank. Some issues lack intelligent judgement for real…but any way, what do you expect from PF, and its cadres who worship a shameless, drunk and rabied dog-god Rungu
Bravo BOZ.
It will resurrect
It will resurrect my foot!!! If depositors will most definitely rush to withdraw, why take your money there? Maybe its a Zambian thing to rush to troubled banks. Once beaten twice shy!!!
Bank of Zambia you have killed thus Bank, once beaten twice shy. You will be luck to retain desitors.
START GIVING LOANS AT SAY 21% IT WILL HAVE EVEN MORE CUSTOMERS, OTHERWISE DEPOSITORS WERE TRAUMATISED AND WILL WALK AWAY – SAD.
Will the directors be charged for trading whilst insolvent.
Solvency for Adequacy Long-term for Short term Please Publish those statement officially in the daily mail the Restructured for consumer confidence and protection of deposits including assurance of confidence
What compensation the financial sector might offer for lack of access at LIBOR plus or the opportunity cost in time and value to the innocent
Publish