FANANCE Bank Zambia (FBZ) has appealed to the Supreme Court for the recovery of $3 millon debt from the Development Bank of Zambia (DBZ) which Zambian Airways had contracted with the bank, says chairman William Nyirenda.
Mr Nyirenda said this was after its bid to claim the money from DBZ was thrown out by the High Court.
In a Press statement to clarify what the bank says are misleading media reports concerning a judgment between FNB and DBZ, Mr Nyirenda explained that the case in issue involved a debt that Zambian Airways contracted with FNB in 2008 .
Mr Nyirenda said DBZ undertook to indemnify FNB against the lending as DBZ was in the process of converting its debt in Zambian Aiways into equity for the purpose of the litigation which was started in 2009 by FNB to enforce the indenimity pledge by DBZ against the airline’s indebtness to FBZ.
“This was purely a commercial matter for debt recovery that FBZ had commenced in the normal course of due process. The case haw nothing to do with breaches of banking regulations as maliciously reported,” he said
Mr Nyirenda said FBZ’s claim of US$3 million against DBZ was unsuccessful in the High Court.
“In any event, as per standard banking practice the debt was classified and was adequatekly provided for in FBZ books,” he said
He said FBZ has since appealed to the Supreme Court against the judgment of the High Court and could not there comment further as the matter was subjudice.
“Consequently, the question of DBZ’s liability to FBZ remains unsettled until the Supreme Court determines the appeal,” said Mr Nyirenda