DBZ owed K88 billion, can’t undertake any projects

The Development Bank of Zambia is operating on a US$ 55 million capitalization instead of US$ 700 million.

Development Bank of Zambia Acting Managing Director Darwin Shinde says according to the Development bank of Zambia act the institution is supposed to have an authorized capital of 700 million dollars.

He told ZNBC news in Lusaka that the bank needs 50 million dollars for re-capitalization in the next 14 years to reach the authorized capital.

Shinde says currently the bank cannot participate in major developmental projects such as power expansion programmes because of insignificant capital.

He says Development bank Zambia is owed K88 billion loans and has K30 billion worth of bad loans.

On Tuesday Finance Deputy Minister Miles Sampa visited Development Bank of Zambia and said government will consider recapitalizing the bank.

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