THE Reserve Bank of Zimbabwe (RBZ) has applied to the High Court of Zimbabwe for the liquidation of troubled Interfin Bank Limited following the expiry of the curatorship period.
Interfin was placed under curatorship in June 2011 after it was found not to be in a safe and sound financial position. The curatorship period expired yesterday.
The central bank said in a statement yesterday that it had been determined that it was no longer feasible to resuscitate the banking institution as a viable concern as all efforts to recapitalise it had yielded no positive results.
It said any further extension of curatorship would only further prejudice depositors and creditors.
“Members of the public are advised that the curatorship period for Interfin Bank Limited expired on 31 December 2014. The Reserve Bank of Zimbabwe hereinafter referred to as the Reserve Bank has, in terms of section 57 of the Banking Act [Chapter 24:20], applied to the High Court of Zimbabwe for the liquidation of the banking institution,” RBZ said.
“The primary purpose of placing the banking institution under curatorship was to protect depositors and preserve the assets of the banking institution with the intention of resuscitating the banking institution to become a viable concern.
“There were various initiatives and attempts to resuscitate the banking institution by the Curator. A total of 12 potential investors were considered. However, none of the proposals put forward yielded any positive results and the institution’s condition continued to deteriorate in the absence of concrete recapitalisation plans.”
Interfin was registered in October 1999 in terms of the Banking Act.
The bank acquired 51% shareholding in CFX Financial Services Limited.
The bank’s parent company, Interfin Financial Services, was suspended from the Zimbabwe Stock Exchange in 2012.
At the time of being placed under curatorship, Interfin Bank had a negative core capital of $92,9 million.