.Bank of Zambia released a statement on their website informing the public that it had taken possession of Intermarket Banking Corporation on account of the fact that the entity was insolvent. Insolvency breaches Section 81 of the Banking and Financial Services Act (BFSA):
The Bank of Zambia is empowered by section 81 of the bfsa to take POSSESSION of a financial service provider, where in its opinion, an inspection of the financial service provider instituted under this act shows that:
Intermarket Bank is one of 19 registered commercial banks in Zambia. It is majority owned by Afriland First Group of Cameroon. Their website is currently down and their is'nt any publicly available data to ascertain how many depositors have exposure to this bank.
Central Bank Governor Denny Kalyalya gives first media briefing
My comments this morning will focus on issues of economic growth, monetary policy, fiscal policy and how this relates to monetary policy, the external sector environment and the performance of the financial sector. We will be having press briefings after our quarterly monetary policy meetings, the next of which is in May. We are in this regard working on revamping our communications strategy to ensure that we have a more structured and regular way of communicating better with the public, principally through yourselves. (Read more)
Zambia’s newly elected President Edgar Lungu, who has promised lower interest rates, replaced the central bank governor a day after he held borrowing costs at a record high. Lungu named Denny Kalyalya, previously deputy governor, to take over from Michael Gondwe, who had been in the post since 2011, according to an e-mailed statement on Friday. Read more....
The Central Bank kept the policy rate unchanged at 12.5% until the next decision in May 2015. They cited the slowdown in China’s growth as a key component in the policy rate decision because it has a negative impact on global copper prices which in turn has a downward effect on the Kwacha and consequently inflation. This is the first policy rate decision since last month’s election.
2015 has started off in stark contrast to the previous year - January inflation slowed down for a second month in a row to 7.7 percent. According the Central Statistical Office (CSO), the slowdown was driven by a decline in food as well as some non-food prices.
2014 has been a bit of a rollercoaster year for Zambia. The country lost President Michael Chilufya Sata to illness a few days after celebrating its 50th year of existence. The consumer was under tremendous pressure as the effects of a weaker Kwacha took hold over the course of the year.
The central bank received bids worth K1.2 billion and allocated K1.036 billion at Treasury bill (T/bill) auction 20 of 2014 today. K900 million of T/bills were up for auction:
CAF inspectors in town to assess Zambia’s 2019 AFCON bid
Inspectors from the Confederation of African Football (CAF) are in town from the 9th to the 15th of August in order to assess Zambia’s bid to host the African Cup of Nations (AFCON) in 2019. The inspectors will be visiting various stadia, training facilities and accommodations in Lusaka, Ndola, Kitwe, Chingola, Chililabombwe and Livingstone. Zambia is one of five bidders looking to bring home the 2019 AFCON - Guinea, Ivory Coast, Algeria and Cameroon (DRC withdrew their bid). The CAF executive will decide on the hosts for 2019 as well as 2021 in September 2014 at a meeting in Cairo.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *