×
NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

POSB restructuring begins

News
GOVERNMENT is looking for financial advisors for the restructuring and recapitalisation of the People’s Own Savings Bank (POSB) that is expected to take eight months, an official has said.

GOVERNMENT is looking for financial advisors for the restructuring and recapitalisation of the People’s Own Savings Bank (POSB) that is expected to take eight months, an official has said.

Report by Business Reporter

In an interview yesterday, State Enterprises Restructuring Agency executive director Edgar Nyoni said government was yet to establish the amount of money required to recapitalise the bank.

“We have advertised posts for financial advisers for POSB. The bank has to be recapitalised so that it can underwrite more business and offer more lines of credit to customers,” Nyoni said.

Nyoni said during the restructuring exercise, the bank would also look for strategic partners, adding that the bank would continue with its mandate of deposit and savings mobilisation.

Turning to the restructuring of Agribank, Nyoni said the process was progressing well with the due diligence process being assessed by the restructuring technical committee.

“We expect the restructuring of Agribank to be done in four months,” he said.

The government engaged financial advisers for Agribank last year.

The bank has been failing to access lines of credit for the agricultural sector.

If the restructuring process succeeds, Agribank would provide lines of credit to farmers that were currently failing to access loans from banks.

Restructuring of parastatals has been slow since 2009 when the country dollarised largely as a result of government bureaucracy.

Other enterprises targeted for restructuring include Zesa, Air Zimbabwe, National Railways of Zimbabwe, NetOne and TelOne.

The country has over 70 parastatals with the majority of them underperforming.