Is it that ZCCM-IH or BOZ could not bail out Investrust Bank ?
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
02.04.2024
