Goverment upbeat on MSB toxic loans recovery

Minister of Finance and Economic Development Goodall Gondwe says the toxic loans which were at Malawi Savings Bank (MSB) at the time of its sell are slowly being recovered.

MSB, a government wholly-owned commercial bank, was sold off in 2015 to FDH Financial Holdings Limited.

At the time of MSB’s disposal, some individuals and companies owed the bank about K6.1 billion.

Top on the list is Mulli Brothers Limited (MBL) Holdings with K4.9 billion in toxic loans.

But speaking to YFM Online to give an update on the recovery exercise four years after the sale of the bank, Gondwe could not give details as to how much has been recovered so far.

“We appointed a commission to look into it so they are still doing it. Two weeks ago I had a meeting with the chairman of the commission Mr Mphande. We are waiting for the larger amount to be paid,” Gondwe said.

The special recovery vehicle, MSB Debt Collection Company is chaired by Chadwick Mphande.

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