The Zambian government has pledged 1 billion Zambian kwacha ($39 million) support to Investrust, a Lusaka-based commercial bank, to safeguard depositors' funds. Bank of Zambia Governor announced this measure to ensure the stability of the financial sector, revealing that Investrust faced an estimated insolvency rate of $33 million upon takeover. The government's support aims to bridge the gap between assets and liabilities, preserving financial stability and trust in the banking system. Meanwhile, Deputy Governor Operations detailed the possession process, which involved staff verifying funds and securing assets across Investrust's twenty branches in six provinces.
The possession decision, necessitated by Investrust's liquidity challenges, underscores the critical role of financial institutions in fostering economic growth. The government's commitment to supporting Investrust aims to mitigate risks to depositors and sustain financial inclusion, with assurances given that depositors' funds are secure amid the transitional period.