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Zambia’s Central Bank has announced the takeover of Investrust Bank PLC effective April 2 due to its insolvency.
Bank of Zambia (BoZ) Assistant Director-Communications, Besnat Mwanza, made the announcement in a statement issued in Lusaka on Tuesday.
Mwanza explained that the possession of Investrust Bank had been necessitated by its insolvency.
She further stated that the Central Bank has had numerous engagements with the shareholders of Investrust Bank to recapitalise the bank but to no avail.
“Unfortunately, the shareholders have been unable to resolve the insolvency. Under the circumstances, the Bank of Zambia has had to exercise its authority under the law to safeguard financial stability and the interest of the public,” Mwanza said.
She said this was done in pursuant to Section 64 of the Banking and Financial Services Act No.7 of 2017 (BFSA).
Mwanza said: “The Bank of Zambia is also working with key stakeholders, including the government, on mechanisms for depositors not to lose any of their money. Therefore, depositors are hereby urged to remain calm as implementation of the resolution mechanisms are being worked upon.”
“An announcement to this effect will be made as soon as the arrangements are finalised.”
During the possession period, she said the Bank of Zambia shall, in accordance with the law, prepare a statement of affairs of the bank and take any other action deemed necessary.
Mwanza said the purpose of the statement of affairs was meant to establish the full extent of the insolvency of the bank and serve as a basis for the full resolution of the matter.
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