Namibia: Schlettwein Wants SME Bank Closed

Jun 02, 2017 | Namibian; All Africa

Namibian finance minister Calle Schlettwein has rejected a proposal to bail out the desperate SME Bank with up to N$300 million, despite the wish of the central bank governor to recapitalise the bank.

FINANCE minister Calle Schlettwein has rejected a proposal to bail out the desperate SME Bank with up to N$300 million, saying the bank should be closed if it fails to recover over N$200 million "invested" in South Africa. The Namibian understands that Schlettwein wrote to industrialisation minister Immanuel Ngatjizeko and Bank of Namibia governor Ipumbu Shiimi two weeks ago about the bank's closure. Schlettwein could neither confirm nor deny this yesterday. He, however, said consultations are ongoing, and that an announcement will be made after a final decision is taken. Efforts to get comment from Shiimi were not successful either, but Ngatjizeko yesterday confirmed that they had asked the Zimbabwean shareholders what they can offer to keep the bank afloat. Schlettwein's suggestion, according to sources, came after Shiimi wrote to Ngatjizeko and the finance ministry on 6 March 2017, hinting at a bailout. Read more on All Africa. Source: All Africa