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Is it that ZCCM-IH or BOZ could not bail out Investrust Bank ?

Filed under: Special Comments |
One of roles of the central bank ( BOZ) is to act as lender of last resort ( meaning lending money to a commercial bank such as Investrust Bank ).
Second option of funding is getting finance from the financial markets by offloading part of the Investrust bank shares.
71.4% of shares in Investrust Bank are held by ZCCM-IH. It is expected that the majority shareholder would inject money in the bank or offload part of its shares to those willing to inject cash. The remaining shareholders are Meanwood Venture Capital ( 17.5%) and others (11%).
Is it because Investrust bank was no longer profitable ?
Is it because Investrust bank paid out loans to individuals and firms that could not pay back in good time ?
Or BOZ had already extended loans to Investrust Bank on numerous occassions at a discount rate?
Why was ZCCM-IH not willing to engage the minority shareholders on resolving the matter with the regulator (BOZ) ?
It will therefore be necessary for more details to be provided to the public on why Investrust Bank had become insolvent despite these two options of funding.
Christopher Kang’ombe
Kamfinsa MP

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