The Citizen (Dar es Salaam)
Mnaku Mbani
27 March 2008
Shareholders of the PTA Bank in eastern and southern Africa have boosted their respective capital subscription after the bank changed its capital structure last year.
The bank's director of finance, Mr Alex Gitari, says the bank's authorized share capital has thus risen to $2 billion (about Sh2.3 billion) from $544 million (about Sh625.6 billion).
Paid up capital for each member is now $236 million (about Sh271.4 billion) from the previous $188 million (about Sh216.2 billion) over a five-year period which ends in January 2009.
Mr Gitari's announcement is contained in a statement sent to the Dar es Salaam Stock Exchange (DSE) recently .
"The new measures would enable the bank's growth momentum remain unhindered by capital constraints," the statement quotes the bank president, Dr Michael Gondwe, as saying.
It was the first time since its inception over two decades ago for the bank to raise its capital share holding.
Countries with shares in the bank include Kenya, Zambia, Zimbabwe, Burundi, Comoros, Djibouti, Egypt, Eritrea, Ethiopia, Somalia, Sudan, Uganda and Tanzania.
The PTA Bank, a long-term finance provider, plays an important role in the promotion and development of the economies of member countries.
It offers lines of credit and guarantees to projects ranging from a minimum of $500,000 (about Sh575 billion) to a maximum of $20 million (about Sh575 billion).
The bank's annual growth rate has averaged 24 percent in the last four years while profit stood at $ 4.57 million (about Sh5.25 billion) in 2006. Its assets stand at $ 351 million (about Sh403.65 billion).
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