Finance Minister Felix Mutati has assured the nation that Intermarket Banking Corporation will not be liquidated.
Presenting a ministerial statement in Parliament this afternoon, Mr Mutati revealed that Intermarket Banking Corporation is expected to resume operations in 30 days.
He said the bank has managed to attract fresh capital from new shareholders as part of its restructuring process.
Mr Mutati also explained that the issue of the name having the risk of scaring away customers is secondary as the new shareholders have already provided for adequate resources to take care of anticipated withdrawals once the bank reopens.
He said the possession of IBC by the Bank of Zambia was pursuant to Section 81 of the Banking and Financial Services Act which empowers the Central Bank to take possession of a financial service provider which is insolvent, unable to meet its financial obligations, and consequently posing a threat to financial systems stability.
“Following the possession of IBC, the Bank of Zambia as required by law prepared a Statement of Affairs of the Assets and Liabilities of IBC within 90 days and engaged the shareholders in order to explore modalities for the restoration of the bank’s solvency,” Mr Mutati said.
He added, “I am pleased to inform the House that the Bank of Zambia has accepted the proposal submitted by shareholders as providing a viable basis for a substantive restructuring of the bank which should lead to the resumption of its operations. Consequently, IBC is now taking steps to implement the restructuring plan as approved by the Bank of Zambia.”
Mr Mutati said during the restructuring period, the Bank of Zambia will closely monitor the activities of the bank and the public will be informed in due course regarding the timing of the resumption of its operations.
“In short, Mr. Speaker, the Bank is not going into liquidation but is being restructured so that it meets its obligations and consequently its capitalization requirements to continue its normal operations,” he said.
I am sorry I tried for years to like Mutati, but I failed. You can help me if you are good at reconciling people.
Then the POST can do the same
sounds like you’ve got a great tool here. i’m not really good in programming but i’ll ask one of my programmers to implement your tool in one of my si.titse’s great to have people like you who can create tools to help all of us in the industry. thanks!
It is clear that the greedy one Rupiah Banda had a hand in the grabbing of the bank, which was solvent anyway, from the owners. Now that true owners have given Rupiah some shares, Govt and the likes of Mutati are rushing to the fore to tell us that the Bank will not be liquidated.
That ugly big nosed id.iot Rupiah is evil…he had done the same to Finance Bank and nearly succeeded BUT this time he has grabbed shares for nothing and the Bank is being allowed to operate. It is such people who need to be completely eliminated in any revolution to come. Just when the nation starts to go forward Rupiah Banda comes up with his corrupt sons dragging the whole country backwards. Evil Old Ar.se.
How was the IBC closure connected to Ruphia Banda?
Bravo to PF government and hon Mutati. May the almight God bless you. Thank you.