DOCSLIB.ORG

World Bank Document

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
World Bank Document FILECopy Document of The World Bank International Finance Corporation FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. P-2227a-MAI REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE Public Disclosure Authorized EXECUTIVE DIRECTORS OF THE BANK AND TO THE BOARD OF DIRECTORS OF THE CORPORATION ON A PROPOSED LOAN BY THE BANK TO THE INVESTMENT AND DEVELOPMENTBANK OF MALAWI WITH THE GUARANTEEOF THE Public Disclosure Authorized REPUBLIC OF MALAWI AND A PROPOSED INVESTMENT BY THE CORPORATION IN THI INVESTMENT AND DEVELOPMENTBANK OF MALAWI June 22, 1978 Public Disclosure Authorized This documenthas a restricteddistribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit = Malawi Kwacha (MK) US$1.00 = MK 0.89 MK 1.00 = US$1.12 MK 1,000 = US$1,120 MK 1,000,000 = US$1,120,000 WEIGHTS AND MEASURES 1 foot (ft) = 0.305 meters (m) I mile (mi) = 1.609 kilometers (km) 2 1 square mile (sq mi) = 2.590 square kilometers (km ) 1 ton (t) = 0.907 metric tons (m ton) GLOSSARY OF ABBREVIATIONS ADMARC - Agricultural Development and Marketing Corporation CDC - Commonwealth Development Corporation DEG - Deutsche Entwicklungs Gesellschaft DEVPOL - Government's Statement of Development Policies EIB - European Investment Bank FMO - Nederlandse Financierings - Maatschappij voor Ontwikkelings Landen N.V. IECM - Import-Export Company of Malawi INDEBANK - Investment and Development Bank of Malawi MDC - Malawi Development Corporation MWS - Ministry of Works and Supplies GOVERNMENT'S FISCAL YEAR April 1 - March 31 FOR OFFICIAL USE ONLY MALAWI INDEBANK PROJECT LOAN, EQUITY AND PROJECT SUMMARY IBRD Loan Borrower: Investment and Development Bank of Malawi Limited (INDEBANK) Guarantor: Republic of Malawi Amount: US$3.0 million equivalent Terms: Repayable in accordance with a schedule which would conform substantially to the aggregate of the amortiza- tion schedules applicable to the sub-loans. The maximum repayment period would be 17 years. Interest would be 7.5 percent per annum. Relending Terms: INDEBANK would relend the proceeds of the loan at an interest rate which could vary between 10.5 and 11.0 percent per annum for a maximum period of 15 years, including 2 years of grace. The foreign exchange risk would be borne by the sub-borrowers. IFC Investment: 500,000 INDEBANK shares of par value MK1 each to be subscribed by IFC at par (approximately US$562,000 equivalent). Project Description: The project seeks to assist the growth of medium- to large-scale enterprises in Malawi by providing funds to INDEBANK for financing the foreign exchange component of industrial projects. It would also seek to improve the operational policies of INDEBANK and, through IFC's representation on the institution's board, to provide technical advice to INDEBANK's management. It would create an estimated 1,100 new jobs. The project faces no special risks. INDEBANK will pass the foreign exchange risk to its borrowers. Estimated Resource Local Foreign Total Requirement (1978-mid 1981) (US$ million): Industry 4.0 7.4 11.4 Agriculture 1.2 2.4 3.6 Real Estate and Others 1.4 2.5 3.9 Total 6.6 12.3 18.9 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. - ii - Financing Plan (US$ Million): Local Foreign Total Resources available at end 1977 0.9 1.6 2.5 European Investment Bank (Loan) 0.0 3.3 3.3 Internal Cash Generation by INDEBANK 4.4 0.0 4.4 INDEBANK's existing shareholders 1.1 3.3 4.4 Proposed Loan 0.0 3.0 3.0 Proposed IFC Investment 0.0 0.6 0.6 Gap 11 0.2 0.5 0.7 6.6 12.3 18.9 Estimated Loan Disbursements (US$ million): Bank FY 1979 1980 1981 1982 Annual 0.2 1.3 1.3 0.2 Cumulative 0.2 1.5 2.8 3.0 Rate of Return: n.a. Appraisal Report: Ref. No. 1914a-MAI June 9, 1978. 1/ The European Investment Bank has expressed willingness to make another loan to INDEBANK when its present loan is fully committed. REPORT AND RECOMMENDATIONOF THE PRESIDENT TO THE EXECUTIVE DIRECTORS OF THE BANK AND TO THE BOARD OF DIRECTORS OF THE CORPORATION ON A PROPOSED LOAN BY THE BANK TO THE INVESTMENT AND DEVELOPMENTBANK OF MALAWILTD. WITH THE GUARANTEEOF THE REPUBLIC OF MALAWIAND A PROPOSED INVESTMENT BY THE CORPORATION IN THIS DEVELOPMENTFINANCE COMPANY 1. I submit the following report and recommendation on a proposed loan to the Investment and Development Bank of Malawi Ltd. (INDEBANK) with the guarantee of the Republic of Malawi for the equivalent of US$4.0 million, and a proposed IFC investment of MK 500,000 (approximately US$562,000 equiva- lent) in the share capital of INDEBANK. The loan would bear interest at 7.5 percent per annum and the repayment would conform substantially to the aggregate of the amortization schedules applicable to the sub-loans made pur- suant to this loan. The maximum repayment period would be 17 years. INDEBANK would use US$3.0 million to help finance the foreign exchange component of its loans and investments and would channel the remaining US$1.0 million through two commercial banks to help finance the foreign exchange component of loans and investments in small-scale enterprises. PART I - THE ECONOMY 2. A report entitled "Memorandum on the Economy of Malawi" (Report No. 1677a-MAI) dated September 30, 1977 was circulated to the Executive Directors on October 10, 1977. Country data sheets are provided in Annex I. 3. At independence in 1964, Malawi was the poorest of the three terri- tories of the former Central African Federation. With a population of 5.2 million and a land area of about 118,500 square kilometers, Malawi is also densely populated. Its main assets are moderately fertile soils, good water resources and a climate favorable to crop production. Unlike its neighbors, Malawi has no substantial mineral resources. Forests constitute the main essentially untapped resource which could be exploited on a signi- ficant scale in the future. At independence, the tax base was very narrow, government revenues had to be supplemented with British budgetary aid to support the administration, and prospects for economic development were generally regarded as bleak. 4. Malawi has a GNP per capita of only US$140 and is listed by the United Nations among the world's poorest countries. Measured against the country's natural endowments, however, progress since 1964 has been remark- able. Between 1964 and 1976, GDP at constant prices grew at an average annual rate of 6.5 percent, domestic investment and savings increased rapidly, and government finances had improved sufficiently to eliminate the need for budgetary aid. Agriculture, which dominates the economy (46 percent of GDP and 40 percent of paid employment in 1976), has been directed towards export markets by encouraging cash crop estates production and integrated rural development schemes. In addition, rapid industrial development (the share of industry rose from 9 percent of GDP in 1964 to 18 percent in 1976) has significantly broadened the economic base. -2- 5. The continuingsuccess of Malawi's developmentefforts has been the result of realistic and purposefulplanning by the Government. A State- ment of DevelopmentPolicies (DEVPOL),which provides a general framework for three-yearrolling plans, was published in 1971. DEVPOL contains guidelines for major economic targets up to 1980 and states as main socioeconomicobjec- tives: (a) raising living standardsand productivityin rural areas; (b) achieving an average annual growth of GDP of 8 percent through the parallel developmentof smallholderoutput, estate agricultureand industry; (c) promoting a more balanced regional development;and (d) developinglocal initiativesby gradually increasinglocal participationin the economy. 6. Within the public sector, agriculturewill receive 19 percent, public utilities 11 percent, and social services 15 percent of total in- vestment during 1971-80. The transportationsector will receive about 29 percent, although between now and 1980 the proportion is expected to be tem- porarily higher (46 percent) because of the concentrationof several large investmentsin those years. Malawi has an effective administrationwhich has been quite successfulin preparing and implementingdevelopment projects. 7. DEVPOL recognizesthe importantrole of private investmentin devel- opment which, it is anticipated,will account for about one-half of total fixed capital formation over the 1971-80 period. The Government also recog- nizes the role of a healthy private sector in generating foreign exchange and savings needed to sustain other elements of the developmentstrategy, and has adopted policies which are intended to attract foreign investors and to ensure a continuedhigh growth of the private sector. Trade and payments policies are liberal, profits moderately taxed and wages are held down to favor labor- intensive estates and industries. The modern private sector has been the leader in economic growth. The output of estate agricultureincreased by 10 percent a year in real terms over the past decade, and industrialproduction rose by 13 percent annually. 8. In 1969 (the last year for which reliable income data are avail- able), the poorest 40 percent of Malawi's householdsreceived 15 percent of the total; the highest 20 percent received 53 percent and the top 5 percent received 30 percent. These figures compared well with those of other develop- ing countries. Since then, the rapid developmentof the modern private sector has probably led to a less equitable situation. 9. To offset the adverse distributionaleffect of the growth of the modern private sector, the Governmenthas directed some of its agricultural investmentprogram toward the smallholders. However, for some years, the Governmentkept producer prices well below internationalprices until they started acting as disincentivesto producers.
Load more

Recommended publications
  • The World Bank for OFFICIAL USE ONLY
    Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 59793-MW PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 18.1 MILLION Public Disclosure Authorized (US$28.2 MILLION EQUIVALENT) TO THE THE REPUBLIC OF MALAWI FOR THE FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (FSTAP) Public Disclosure Authorized February 28, 2011 Finance and Private Sector Development East and Southern Africa Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective January 31, 2011) Currency Unit = Malawi Kawacha (MK) US$1 = MK 150.77 US$1 = SDR 0.640229 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ACH Automated Clearing House AfDB African Development Bank AFRITAC African Technical Assistance Center ATS Automated Transfer System BAM Bankers’ Association of Malawi BESTAP Business Environment Strengthening Technical Assistance Project BSD Banking Supervision Department CAS Country Assistance Strategy CEM Country Economic Memorandum CSC Credit and Savings Co-operatives CSD Central Securities Depository DEMAT Development of Malawi Trader’s Trust DFID UK Department of International Development EFT Electronic Funds Transfer FIMA The Financial Inclusion in Malawi FIRST Financial Sector Reform and Strengthening Initiative FMP Financial Management Plan FSAP Financial Sector
    [Show full text]
  • Malawi RISK & COMPLIANCE REPORT DATE: March 2018
    Malawi RISK & COMPLIANCE REPORT DATE: March 2018 KNOWYOURCOUNTRY.COM Executive Summary - Malawi Sanctions: None FAFT list of AML No Deficient Countries Not on EU White list equivalent jurisdictions Higher Risk Areas: Corruption Index (Transparency International & W.G.I.) Failed States Index (Political Issues)(Average Score) Non - Compliance with FATF 40 + 9 Recommendations Medium Risk Areas: World Governance Indicators (Average Score) Major Investment Areas: Agriculture - products: tobacco, sugarcane, cotton, tea, corn, potatoes, cassava (tapioca), sorghum, pulses, groundnuts, Macadamia nuts; cattle, goats Industries: tobacco, tea, sugar, sawmill products, cement, consumer goods Exports - commodities: tobacco 53%, tea, sugar, cotton, coffee, peanuts, wood products, apparel Exports - partners: Canada 9.8%, Zimbabwe 9.5%, Germany 6.7%, South Africa 6.3%, Russia 6%, US 5.7%, Egypt 5.3% (2012) Imports - commodities: food, petroleum products, semi-manufactures, consumer goods, transportation equipment Imports - partners: South Africa 26.5%, China 16.2%, Zambia 9.1%, India 8.5%, Tanzania 5.5%, US 4.1% (2012) Investment Restrictions: 1 The government encourages both domestic and foreign investment in most sectors of the economy without restrictions on ownership, size of investment, source of funds, or the destination of the final product. There is no government screening of foreign investment in Malawi. Apart from the privatization program, the government's overall economic and industrial policy does not have discriminatory effects on foreign investors. Since industrial licensing in Malawi applies to both domestic and foreign investment, and is only restricted to a short list of products, it does not limit competition, protect domestic interests, or discriminate against foreign investors at any stage of investment.
    [Show full text]
  • Malawi-Financial-Sector-Technical
    Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: ICR00004184 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-48970) ON A CREDIT IN THE AMOUNT OF SDR 18.1 MILLION Public Disclosure Authorized (US$28.2 MILLION EQUIVALENT) TO THE THE REPUBLIC OF MALAWI MINISTRY OF FINANCE, ECONOMY AND DEVELOMENT FOR THE MALAWI - FINANCIAL SECTOR TECHNICAL ASSISTANCE PROJECT (P122616) Public Disclosure Authorized May 29, 2019 Finance, Competitiveness and Innovation Global Practice Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective Currency Unit = Malawi Kwacha (MK) MK 726.35 = US$1 US$1 = SDR 0.71 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ACH Automated Clearing House ADR Alternative Dispute Resolution ATM Automated Teller Machine ATS Automated Transfer System CAS Country Assistance Strategy CSD Central Securities Deposit CDS Central Depository System CPFL Consumer Protection and Financial Literacy DFID U.K. Department for International Development EFT Electronic Funds Transfer FIU Financial Intelligence Unit FM Financial Management FSAP Financial Sector Assessment Program FSDT Financial Sector Deepening Trust FSPU Financial Sector Policy Unit FSTAP Financial Sector Technical Assistance Project GCI Global Competitiveness Index GDP Gross Domestic Product GoM Government
    [Show full text]
  • World Bank Document
    Report No. 3460-MAI Mjawi The DevelocpmenIt of Manufacturng 8, 1981 Public Disclosure Authorized May Eastern Africa Regional Office FOR OFFOCDAL USE ONLY Public Disclosure Authorized Public Disclosure Authorized Document of the World Bank Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit = Kwacha (K) Exchange Rate Kwacha 1 = US$ US$1 = Kwacha Average 1973 1.2206 0.8193 Average 1974 1.1888 0.8412 Average 1975 1.1577 0.8638 Average 1976 1.0953 0.9130 Average 1977 1.1075 0.9029 Average 1978 1.1851 0,8438 Average 1979 1,2241 0.8169 ABBREVIATIONS ADMARC - Agriculture Development and Marketing Corporation AMEC - American Management and Engineering Corporation, Inc. BTN - Brussels Tariff Nomenclature CDC - Commonwealth Development Corporation DEG - Deutsche Gesellschaft fur Wirtschaftliche Zusammenarbeit DEVRES - Development Resources EAD - Economic Affairs Division, Ministry of Finance EDD - Economic Development Division, Office of the President and Cabinet EPD - Economic Planning Division, Office of the President and Cabinet FMO - Nederlanse Financierings-Maatschappij voor Ontwikkelingslanden N.V. IFC - International Finance Corporation IMEXCO - Import and Export Company of Malawi INDEBANK - Industrial Development Bank MES - Minimum Economic Size Plant MTIT - Ministry of Trade, Industry and Tourism NSO - National Statistical Office Press - Press Holdings Ltd. FISCAL YEAR April 1 - March 30 - i- FOR OFFICIAL USE ONLY PREFACE 1. This report is one of a series of six special reports that have been produced as the result of the 1979 Basic Economic Mission.l/ The major purposes of the Basic Economic Mission were to review the performance of the Malawian economy since independence (1964) and to assess the future prospects for growth over the next decade or more, identifying the major constraints to development and making recommendations for their relief.
    [Show full text]
  • 2010, Significant Efforts Focused on the Implementation of a New Core Banking IT Platform and the Completion of the New Business and Office Complex Project
    In 2010, significant efforts focused on the implementation of a new core banking IT platform and the completion of the new Business and Office Complex project. The Bank of the Nation 2010 ANNUAL REPORT C O N T E N T S 4 Vision, Mission Statement and Core Values 5 Group Financial Highlights 6 Current Directors 8 Report of the Directors 12 Chairman’s Report 14 Senior Management 16 Chief Executive Officer’s Statement 23 Corporate Activities 31 Selected Key Clients’ Activities 39 Economic Review and Prospects for 2011 42 Corporate Governance Statement 43 Statement of Directors’ Responsibilities 44 Report of the Independent Auditor 45 Statements of Financial Position 46 Statements of Comprehensive Income 47 Statements of Changes in Equity 50 Statements of Cashflows 51 Notes to the Financial Statements 110 Correspondent Banks 111 Head Office and Service Centres 112 Map of Malawi - National Bank of Malawi Service Centres Mangochi andMulanjeServicecentres. We concludedtherenovationandre-brandingprogramwithrefurbishmentofChichiri, 3 N ATIONAL B ANK OF M ALAWI - THE B ANK OF THE N ATION VISION To be the most successful financial institution in Malawi with a visible presence in the Southern Africa Region. MISSION STATEMENT To provide the best financial services in Malawi and the region, distinguished by outstanding service, product innovation and sustained earnings growth. CORE VALUES Customer Satisfaction Employee Commitment Always striving to meet our customers’ The Bank will be commited to excellence in its 2010 expectations and putting the customer first. performance and that the employees will have a clear understanding of its objectives and goals. EPORT Employee Recruitment R and Development Integrity and Trust Employees are the key to the success of National All Bank employees will fully comply with and Bank of Malawi.
    [Show full text]
  • The Private Sector and the Economic Development of Malawi
    A.I.D. Evaluation Special Study No.ll The Private Sector And The Economic Development Of Malawi March 1983 U.S. Agency for International Developm~nt (AID) PN-AAL-006 THE PRIVATE SECTOR AND THE ECONOMIC DEVELOPMENT OF MALAWI A.I.D. Evaluation Special Study No. 11 by Jerome Wolgin, Team Leader (Bureau for Program and Policy Coordination) Cynthia Clapp-Wiricek (Bureau for .Program and Policy Coordination) George Honadle (Consultant, Development Alternatives, Inc.) Timothy Mahoney (Bureau for Program and Policy Coordination) Talbot Penner (AID, washington) U.S. Agency for International Development March 1983 The views and interpretations expressed in this report are those of the authors and should not be attributed to the Agency for International Development. A.I.D. EVALUATION PUBLICATIONS A complete list of reports issued in the A.I.D. Evaluation Publication series is included in the back of this document, together with information for ordering reports. TABLE OF CONTENTS List of Tables and Figures •• .. ... .. .. •• iv Foreword ••••••••••••••• _••••• ..... ... ..v summary and Lessons Learned. .vi Preface •• • • X Glossary. .... .xi Map •••••• . .. .. .. • .xiii I • Economic Development In Malawi ••••••••• • .1 A. Introduction ••••••••••••• .1 B. Economic Structure •.••••••• • • 3 1. The Statutory Bodies. .. .4 a. Press Holdings, Ltd. .4 b. The Malawi Development Corporation (MDC) • • 5 c. The Agricultural Development and Marketing Corporation (ADMARC) •••••••••••••••••••••••• • 6 d. The Investment Development Bank (INDEBANK) ••• 7 e. The Public Holding Company and the Private Economy ••••••••••••••••••••••••••••••.•••••• • • 8 2. The Large- and Medium-scale Private Enterprise In Malawi--Alive .and Well, and owned by the Government ••••••••••••••••••••••••••••••• •. 11 3. The smal.lholder and the Prop·r ietal Firm •• ..13 4.
    [Show full text]
  • 2016 Annual Report
    Strategic Report | Corporate Governance Financial Statements On the Malawi Stock Exchange Annual Report 2016 1 | PRESS CORPORATION LIMITED | Annual Report 2016 CONTENTS Strategic Report Strategic Report Financial Highlights 1 Corporate Social Responsibility 2 Vision, Mission Statement, Core Values 5 Chairman’s Report 6 | Corporate Governance Group Chief Executive’s Report 8 Business Overview 11 Corporate Governance Risk Management 32 Profile of Directors 34 Financial Statements Profile of Management 41 Five Year Group Financial Review 42 Financial Statements On the Malawi Stock Exchange Directors’ Report 44 Statement of Directors’ Responsibilities 45 Independent Auditors’ Report 46 Consolidated and Separate Statements of Financial Position 53 Consolidated and Separate Statements of Comprehensive Income 54 Consolidated Statements of Changes in Equity 55 Consolidated and Separate Statements of Cash Flows 57 Notes to the Consolidated and Separate Statements 58 - 149 On the Malawi Stock Exchange 150 Administration 151 Annual Report 2016 Cover photo by Billy Mphande, owner of Shire Camp Safaris in Liwonde PRESS CORPORATION LIMITED | Annual Report 2016 | 2 FINANCIAL HIGHLIGHTS Malawi Kwacha US Dollars Group Summary (in millions) 2016 2015 Change % 2016 2015 Change % Turnover 188,857 161,136 17.20 272 283 (3.85) Attributable earnings 6,804 4,197 62.12 10 7 33.00 Shareholders' equity 103,206 91,698 12.55 142 138 3.09 Share performance Basic earnings per share 56.61 34.92 62.12 0.08 0.06 33.00 Cash retained from operations per share 186.73 74.67
    [Show full text]
  • Annual Report 2016
    National Bank of Malawi Annual Report 2016 Feel the bliss of cashless banking NBM VISA CARD & MASTERCARD Revealing the happy and trendy you as you pay for goods and services cashlessly. Contents 7 Vision, Mission Statement and Core Values 9 Group Financial Highlights 11 Current Directors 14 Report of the Directors 17 Chairman’s Report 21 Senior Management 25 Chief Executive Officer’s Statement 33 Staff Activities 37 Corporate Social Responsibility 42 Selected Key Clients 52 Economic Review 54 Corporate Governance Statement 60 Statement of Directors’ Responsibilities 61 Independent Auditor’s Report 67 Statements of Financial Position 68 Statements of Comprehensive Income 70 Statements of Changes in Equity 73 Statements of Cashflows 74 -180 Notes to the Financial Statements 181 Correspondent Banks 182 Map of Malawi - NBM Service Centres 182 Head Office and Major Service Centres Cover photo by Billy Mphande, owner of Shire Camp & Safaris. A view of Lake Malawi in Mangochi. GROUP FINANCIAL HIGHLIGHTS Feel the bliss of cashless banking MyFuel Card Letting your smile go miles as you cashlessly pay for your fuel. ToVISION be the most successful financial institution in Malawi with a visible presence in the Southern Africa Region. Commitment The Bank will be committed to excellence in its performance and that the employees will have a clear understanding of its objectives and goals. MISSION STATEMENT To provide the best financial services in Malawi and the region, distinguished by Integrity and Trust outstanding service, product innovation All Bank employees will fully comply with and sustained earnings growth. and share the bank’s commitment to high moral, ethical and legal standards.
    [Show full text]
  • National Bank of Mw Vs Lilongwe Gas Company Ltd 1
    IN THE HIGH COURT OF MALAWI COMMERCIAL DIVISION BLANTYRE REGISTRY COMMERCIAL CASE NUMBER 165 OF 2016 NATIONAL BANK OF MALAWI LTD .................................................. PLAINTIFF VERSUS LILONGWE GAS COMPANY LTD ................................................... DEFENDANT CORAM: HON. JUSTICE J. N. KATSALA H. Mwangomba, of counsel for the plaintiff A. ·Kauka, of counsel for the defendant Makonyo, Court Clerk/Recording Officer JUDGMENT The plaintiff took out a writ of summons against the defendant claiming the sum of K31,424,072.42 being money advanced to the defendant by way of loan plus interest thereon "at the plaintiffs prevailing lending rate plus 10% penalty interest ... ". The defendant served a defence in which it admitted obtaining the loan but disputed that it is liable to pay penalty interest to the plaintiff. The defendant then took out a Notice of Motion under section 3 of the Loans Recovery Act and Order 7, rule 11 of the High Court (Commercial Division) Rules, 2007 seeking a declaration of this Court that it (the defendant) is not liable to pay to the plaintiff penalty interest or a sum of Kl4,500.00 for every default in instalments, as was claimed by the plaintiff. The facts of the case are brief, straight forward and agreed between the parties. By an agreement made on or about 2 January 2013 , the plaintiff advanced to the defendant by way of loan a sum of K9.1 million for the purpose of procurement of raw materials. It was agreed that the loan would attract interest at the rate of 5% above the plaintiff's base lending rate then at 35% per annum - making an effective rate of 40% per annum.
    [Show full text]
  • SADC Financial Systems: Structures, Policies and Markets
    SADC Financial Systems: Structures, Policies and Markets September 2012 Disclaimer This report has been prepared from information produced by the SADC central banks and all efforts have been made to ensure the accuracy of the information contained herein. However, the Secretariat of the Committee of Central Bank Governors does not warrant the correctness of, and shall not be held responsible for any errors or omissions contained in the information received. This report has been prepared by the Secretariat of the Committee of Central Bank Governors with information made available as at 20 August 2012. Foreword Early in 1995, the Finance & Investment Sector of the Southern African Development Community (SADC) was created and the co-ordination of this new sector was allocated to South Africa. Within this sector, two independent but interrelated committees were established, namely the Committee of Treasury Officials to attend to fiscal issues, and the Committee of Central Bank Governors to attend to monetary policy issues. At its inaugural meeting on 24 November 1995, the Committee of Central Bank Governors in SADC (CCBG) identified the need for greater knowledge of the structures and policies of central banks as well as the financial markets of member states as a prerequisite for future co-operation in the area of monetary policy. To this end, a project was launched to establish an information base on central banks in the region. In July 1996, the Ministers of Finance of the twelve member states approved this initiative as an official project of SADC. A comprehensive questionnaire was developed, based on a similar survey done by the Bank for International Settlements (BIS) on central banks in Eastern Europe.
    [Show full text]
  • NB 2010 ANNUAL REPORT2012.Qxd
    NNNNNNNNNNNNNNNN Cover Photo (Night Scene): National Bank Business Centre and Office Complex - Courtesy of Govati Nyirenda N ATIONAL B ANK OF M ALAWI - A NNUAL R EPORT 2011 00 NNNNNNNNNNNNNNNN 2011 ANNUAL REPORT Cover Photo (Night Scene): National Bank Business Centre and Office Complex - Courtesy of Govati Nyirenda N ATIONAL B ANK OF M ALAWI - A NNUAL R EPORT 2011 00 N ATIONAL B ANK OF M ALAWI - A NNUAL R EPORT 2011 2 CONTENTS 4 Vision, Mission Statement and Core Values 5 Group Financial Highlights 8 Current Directors 10 Report of the Directors 12 Chairman’s Report 14 Senior Management 16 Chief Executive Officer’s Statement 22 Corporate Activities 26 Selected Key Clients’ Activities 30 Economic Review and Prospects for 2012 34 Corporate Governance Statement 35 Statement of Directors’ Responsibilities 36 Independent Auditor’s Report 37 Statements of Financial Position 38 Statements of Comprehensive Income 39 - 41 Statements of Changes in Equity 42 Statements of Cashflows 43 - 104 Notes to the Financial Statements 105 Correspondent Banks 107 Head Office and Service Centres 108 Map of Malawi - NBM Service Centres N ATIONAL VISION To be the most successful financial institution in MISSION Malawi with a visible STATEMENT presence in the Southern Africa Region. To provide the best financial services in Malawi and the region, distinguished by outstanding service, product innovation and sustained earnings growth. CORE VALUES Customer Satisfaction Always striving to meet our customers' expectations and putting the customer first. Employee Recruitment and Development n Employees are the key to the success of National Bank of Malawi n The Bank will recruit based on merit and competencies required for the job.
    [Show full text]
  • 2017 Annual Report
    2017 Annual Report 2017 Annual Report Banking without breaking your strides I have just paid my tuition fees right here on campus without going to the bank. No interruption to my studies. 7 Vision, Mission Statement and Core Values 9 Group Financial Highlights 11 Current Directors 14 Report of the Directors 17 Chairman’s Report 21 Senior Management 24 Chief Executive Officer’s Statement 35 Staff Activities 39 Corporate Social Responsibility Activities 46 Selected Key Clients 56 Economic Review and Outlook 58 Corporate Governance Statement 64 Statement of Directors’ Responsibilities 65 Independent Auditor’s Report 71 Statements of Financial Position 72 Statements of Comprehensive Income 74 Statements of Changes in Equity 77 Statements of Cashflows 78 -186 Notes to the Financial Statements 187 Correspondent Banks 188 Map of Malawi - National Bank of Malawi plc Service Centres 189 National Bank of Malawi plc Head Office and Major Service Centres Cover photo by Bobby Kabango ............................ Inside Photos by Govati Nyirenda I have Just paid my MASM contribution right here in bed. No interruption to my medication VISION MISSION STATEMENT To be the most To provide the best successful financial financial services in institution in Malawi Malawi and the region, with a visible presence distinguished by in the Southern Africa outstanding service, Region. product innovation and sustained earnings growth. CORE VALUES Customer Satisfaction Always striving to meet our customers’ expectations and putting the customer first. Equal Opportunity Employee Recruitment and Development > Employees are the key to the success of National Bank of Malawi > The Bank will recruit based on merit and competencies required for the job > The Bank will ensure that employees are properly trained so that it retains a disciplined and motivated staff > The Bank will provide a working environment which is conducive to continuous employee self-development and advancement.
    [Show full text]