Finance minister Felix Mlusu has told parliament that government has nullified a K10.5 billion loan re-payment schedule deal with Mulli Brothers.
Mulli Brothers was one of the companies that took “toxic” loans from Malawi Savings Bank before it was sold to FDH Bank in 2015.
And responding in a parliament to a question from Lilongwe South legislator Peter Dimba on how government is working in recovering K6 billion plus interests from defaulters of toxic loans like that of Mulli Brothes, Mlusu said government has cancelled the loan agreement which Muli signed with the Democratic Progressive Party (DPP) administration.
According to Mlusu, in the cancelled agreement Mulli Brothers was repaying K5 million per month which meant it could have taken 167 years to complete repaying the loan.
Meanwhile, Mlusu says government is looking at best possible alternatives to recover the remaining amount with the shortest time.