RBZ issues Interfin ultimatum


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The central bank has given a potential investor seeking to inject $50 million in Interfin Bank up to Wednesday next week to show a strong commitment in bailing out the troubled financial institution after threatening to terminate the bank’s curatorship at the end of the month, an official said today.

Interfin, one of the financial banks that collapsed when the multi-currency regime was introduced in 2009, has been under the management of a curator for past two and half years with the hope of finding investors to shore up the bank.

Interfin chairman Tim Chiganze told an extraordinary general meeting that  in September this year, the central bank had written to curator Peter Bailey recommending that the bank surrender its operating licence after struggling to court new investors.

He said following a board meeting held in October, it was noted that two investors were still keen in investing in the bank.

“It was resolved that an anchor shareholder was required for the capitalisation and balance sheet restructuring of the bank,” said Chiganze.

“Therefore the current serious potential shareholder was requested to provide proof of funds and an irrevocable letter of commitment by December 24 and these being the conditions upon which the current curatorship would be extended. Failure to meet the above-mentioned conditions shall result in the bank being placed under provisional liquidation for three months at the expiry of the current curatorship ending December 2014.”

Finance director Raymond Njanike said Belle Holdings, a foreign investor was keen on investing $50 million in the bank.

Chiganze said debt recovery by the curator had also been slow due to the current liquidity crunch, resulting in the bank being unable to accumulate enough cash resources to meet its operating expenses.

He said the bank is also negotiating with the newly established special purpose vehicle, the Zimbabwe Asset Management Company to house its nonperforming loans.

As at November, Interfin had a negative net position of $166 million.- The Source

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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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