By BUUMBA CHIMBULU
GOVERNMENT has appointed two managers to handle the repossessed Development Bank of Zambia (DBZ) and Betternow Finance Company limited who will be responsible for loan recoveries and settlement of liabilities.
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These managers have been given 90 days to prepare a statement of affairs of assets and liabilities of the two institutions.Dr Situmbeko Musokotwane, Finance and National Planning Minister told Parliament yesterday that the statement of affairs would determine further actions that the Bank of Zambia (BoZ) may take as provided for under the Banking and Financial Services Act.Dr Musokotwane said the managers would also engage creditors of the institutions to facilitate resolution of outstanding obligation.On DBZ, Dr Musokotwane regretted that it remained in weak capital position despite being recapitalised 19 times since its inception, amounting to K535 million.“As at 31st May, 2023, DBZ had a regulatory capital of K19.4 million, representing a deficit of K730.6 million in relation to the minimum regulatory capital requirement of K750.0 million. This is a clear indication of a significantly weak capital position,” he said.He, therefore, announced a new establishment of a new development financial institution arising from the envisaged restructuring of DBZ under Boz possession.Dr Musokotwane explained that this would operate under a different institutional and governance franewokr as well as strategy.On Betternow Finance Company Limited, Dr Musokotwane said the supervisory action to possess it was in line with the provisions of the law and the mandate of the BoZ to safeguard the integrity of the financial system.
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