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Central Bank takes over Investrust Bank

Filed under: Breaking News,Business |
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The Bank of Zambia (BoZ) has takenover the operations of Investrust Bank PLC  after the financial institution became insolvent (failure to pay debts as the fall due).

The Central Bank says the move is aimed at safeguarding financial stability, as mandated by Section 64 of the Banking and Financial Services Act No. 7 of 2017 that comes as a response to the bank’s insolvency.

Insolvency is a state of financial distress in which a person or business is unable to pay their debts. This situation arises when liabilities are greater than the value of the company, or when a debtor cannot pay the debts they owe.

A company can become insolvent due to a number of situations that lead to poor cash flow.

In a statement, BoZ urged all depositors to remain calm as implementation of the resolution mechanisms are being worked upon,

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