Lobtrans collapse shakes banking industry

4 February, 2008 in Botswana, Business

source: Sunday Stundard
by Gowenius Toka
03.02.2008 7:04:01 P

Botswana’s three biggest banks are expected to suffer a crippling hit following the unexpected liquidation of one of Botswana biggest companies, Lobtrans.

Details are beginning to emerge of how the collapse of Lobtrans, under a P300 million debt, may hemorrhage First National Bank Botswana, Barclays Bank and Standard Chartered.

The country’s biggest truck operator went on its knees this week and already there are fears the Bank of Botswana may have to intervene to rescue the country’s financial sector which stands to be badly hurt.

Lobtrans owes a number of local banks millions of Pula in loan money, estimated to be around P300 million.
The truck company was placed under judicial management this week, sparking fears that many of Botswana’s banks end of year results will be negatively affected.

All the banks owed by Lobtrans are listed with the Botswana Stock Exchange.
Analysts were this week united that the [continue reading]