Finance minister Felix Mutati today told Parliament that the National Pension Scheme Authority  
(NAPSA) has bought a significant stake in Intermarket Bank, which is expected to resume operations under the name “Zambia Industrial Commercial Bank Limited”

Mutati said the Authority decided to convert its K50 million credit in Intermarket Bank after the institution failed to pay the Authority its deposits.

Earlier, Mutati rendered a ministerial statement to the House without specifying the shareholding structure of the bank.

“Sir, I would like to reiterate that government has successfully restructured Inter market banking corporation Zambia Ltd in possession. Further, the shareholders agreement for the restructured bank has been concluded and the capital requirement has been made. The new bank will operate under the name ‘Zambia Industrial Commercial Bank Limited’ and will take over the assets and deposits of Inter market Banking Corporation Zambia Limited in possession. Management for the restructured bank has been appointed and will soon commence operations,” Mutati said.

“Mr Speaker, the Bank of Zambia will next week conduct public hearings on Intermarket Banking Corporation Zambia limited in Lusaka and Kitwe. These hearings target people who have an interest in the Bank which include depositors, creditors, shareholders and employees. The objective is to ensure that the interest of all stakeholders are taken into account during the restructuring process, Mr Speaker, I thank you.”

However, Nkombo rose to ask the minister to state the names of the shareholders.

Mutati hesitated to reveal the new shareholders until the Speaker intervened.

“For removal of doubt, I can confirm Mr Speaker that at the time the Bank was repossessed, NAPSA had deposits with the bank of close to K50 million. Mr Speaker, if the Bank was to go under, NAPSA was going to lose the entire K50 million so what has happened Mr Speaker is that in the restructuring, NAPSA has converted that K50 million into shares of which they are going to earn dividends and I think it’s a prudent way of undertaking, restructuring and protecting the interests of the workers. Who appointed management [for the upcoming Bank]? It is the share holders. I thank you,” said Mutati.