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Interfin secures foreign investor

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MANAGEMENT at Interfin Holding has reportedly courted a foreign investor that is willing to inject $50 million into the troubled financial institution which is currently under curatorship.

VICTORIA MTOMBA
BUSINESS REPORTER

Speaking at the company’s annual general meeting yesterday, the company’s official Timothy Chiganze said the bank directors and shareholders had a meeting with Reserve Bank of Zimbabwe governor John Mangudya on the progress of the recapitalisation initiatives.

The meeting resolved that an anchor shareholder was required for the capitalisation and balance sheet restructuring of the bank.

“Therefore, the current serious potential shareholder Belle Holdings was requested to provide proof of funds and an irrevocable letter of commitment by the 24th of December 2014 and these being the conditions upon which the current curatorship would be extended. The current shareholder has offered $50 million as it stands,” he said.

“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 period ending 31 December 2014,”Chiganze said.

He said if the conditions were met before year end or during the liquidation period, the liquidation would be stopped to allow the resuscitation of the bank and hence there would be no need for the bank directors to surrender the bank licence.

Chiganze said the bank in November discussed with the central bank on the cancellation of the licence. He said no capitalisation had been concluded with any investor and debt collection had been difficult due to the liquidity challenges in the economy.

“Furthermore, the debts recovery by the curator has been very 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.

Interfin managing director Raymond Njanike said the bank was in discussions with Zimbabwe Asset Management Company(Zamco) and they were still validating all debtors to see who qualified or not.

Interfin was placed under recuperative curatorship on June 11 2012 for an initial period of three months and the curatorship was extended to December 31 2014 to give the curator and the board time to cause the recapitalisation.

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