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.