Govt abandons Agribank, POSB privatization

Government has shelved plans to privatize two State-controlled financial institutions, despite being severely constrained to prop-up struggling parastatals.

This emerged against the backdrop of remarks by Finance and Economic Development Minister Patrick Chinamasa that government would keep some parastatals for public interest and could only consider strategic partnership for others.

But it is understood that State Enterprises Restructuring Agency (SERA) was last year directed to halt negotiations with strategic partners for POSB and Agribank after government opted for the recapitalization route.