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StanChart to study loan liquidations on Copperbelt

StanChart to study loan liquidations on Copperbelt
Written by Chiwoyu Sinyangwe
Wednesday, February 04, 2009 11:06:13 AM

STANDARD Chartered Bank Plc has underplayed fears by some miners on the Copperbelt that they stand to lose out on their terminal benefits as the bank recovers the loans.

Reacting to concerns by miners on the Copperbelt that they were losing out on their terminal benefits because Standard Chartered Bank Plc was recovering the loans to the extent of depriving them of their terminal benefits, bank southern African region head of corporate affairs Luke Njovu said the bank had since dispatched a special team to the area to study the situation.

Njovu said although the current situation on the Copperbelt had been driven by the collapse in copper prices, forcing mining companies to downscale production and others closing down, the bank wanted to emerge from the problem in a “win-win” situation with its clients.

“The whole issue stems from perception that Standard Chartered Bank Plc wants to recover 100 per cent from the outstanding loans. That is not correct,” Njovu said. “We have sent a special unit to the Copperbelt to see how best the loans could be liquidated in a ‘win-win’ situation. You have to appreciate that those loans are not uniform and at the same time are insured. So, for those who had been on our books for more than 60 months, we will only recover 50 per cent and the remainder the bank will take it up with the insurers. The challenge might be with those of our clients who have been on our books for less than six months as those don’t qualify for insurance and that is where the bank comes in and want to discuss with our esteemed customers on how to liquidate the loan completely.”

Njovu claimed that Standard Chartered Bank Plc wanted to recover the loans with a “humane face.”

He explained that although the loans, which are believed to have been insured by Madison, were salary backed and that the current job loses meant a loss of income for the affected miners, Standard Chartered Bank Plc would also look at other revenue earning avenues for former miners.

“They are still our customers and we take a long-term view of our business relation with them which does not end with them losing employment because of this unfortunate development,” said Njovu.

Labels: LOANS, STANCHART

posted by MrK @ 11:04 AM