FBZ appeals against $3 million judgment

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Finance Bank Zambia has clarified that the purposes of the litigation in which it is claiming US$3 million from the Development Bank of Zambia over the debt Zambian Airways had contracted from FBZ in 2008 was to enforce the indemnity pledged by the Development Bank of Zambia.

 

FBZ Acting Board Chairman William Nyirenda in a statement issued to QFM News explains that DBZ undertook to indemnify FBZ against the lending as DBZ was in the process of converting its debt into equity in Zambian Airways.

Mr Nyirenda says the matter was purely commercial for debt recovery that FBZ had commenced in the normal course of business.

He states that the matter had nothing to do with breach of banking regulations as maliciously being reported by some sections of the media.

 

Mr Nyirenda adds that Finance Bank Zambia has since appealed to the Supreme Court against the judgment on its claim of US$3 million from DBZ.

He says this therefore means that the question of DBZ’s liability to Finance Bank remains unsettled until the Supreme Court determines the appeal.

 

QFM

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