In a statement released by the State House, President Mutharika said during this period, government intended to review the process that was undertaken.    

He therefore invited all those who have spoken on the matter including Members of Parliament, civil society organizations and experts to come up with reasonable proposals covering all aspects of the transaction.     

"Government will secure legally binding undertakings to ensure that no single branch of the Malawi Savings Bank is closed." the statement reads.      

Professor Mutharika said the current financial position of MSB has been subject of discussion at various levels of society.     

He said problems being faced by the bank go back several years and the decision to dispose government’s controlling interest in the Malawi Savings Bank was made in 2013.          

Professor Mutharika said there were strong recommendations from the Regulator of Financial Services as well as the captains of the financial services industry in favor of the disposal.     

According to the statement, it became clear to the President that doing nothing would result in the collapse of the bank and that the consequent damage to the financial services industry would be enormous.     

He said Malawi Savings Bank is currently grappling with serious liquidity problems.  Professor Mutharika said his government through the Minister of Finance, Economic Planning and Development had more than once explained its position.     

The Malawi leader said the decision was supported by the Institute of Chartered Accountants in Malawi, the private sector, the Regulator of Banks and Financial Services as well as the donor community including IMF.     

Mutharika said apart from the pressing problems of recapitalization and Basel 2 compliance issues, public discussion has centred on the toxic loans. He said the issue of toxic loans has been an on-going tussle between the bank and its debtors in the courts.         

The President said government has set up a Special Purpose Vehicle charged with the responsibility of recovering funds owed to Malawi Savings Bank.     

He said the Special Purpose Vehicle is a company which will be managed and directed by eminent persons.