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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.

RBZ board member saves property from auction

Business
RESERVE Bank of Zimbabwe (RBZ) deputy board chairperson, Rita Likukuma has saved her property from going under the hammer after settling a $10 000 debt with Agribank.

RESERVE Bank of Zimbabwe (RBZ) deputy board chairperson, Rita Likukuma has saved her property from going under the hammer after settling a $10 000 debt with Agribank.

BY BUSINESS REPORTER

Likukuma’s upmarket property in Greystone Park, together with property from other Agribank defaulters, was supposed to be auctioned yesterday by auctioneers Choruma Marias Valuation and Estate Executives (Pvt) Ltd.

A notice by the property auctioneers on Wednesday showed that the sale of Likukuma’s property had been cancelled.

Likukuma’ property is Stand 483 Greystone Township 8 of Greystone A measuring 4 047 square metres. Improvements include brick-under-tile single storey four-bedroomed house with two lounges, guest wing and staff quarters.

Likukuma, who is also a director of a number of companies, was appointed to the RBZ board in July.

Rita Likukuma

Last week, Likukuma told NewsDay that she was in discussions with the bank over the loan.

“We are talking to the bank. The bank is aware of our commitment. We had already paid something before the advert came out in the newspapers,” she said.

Likukuma said she had borrowed from Agribank and had put the property as collateral.

Since the use of the multi-currency regime, banks have resorted to attaching assets as borrowers defaulted due to the harsh economic environment.

The ratio of non-performing loans (NPLs) in the banking sector stood at 14,52% as at June 30 from a high of 20,45% in June last year.

In his mid-term Monetary Policy Statement, RBZ governor John Mangudya said all banking institutions were expected to work towards a target NPL ratio of less than 10% by June 30, 2016 and 5% by December 31, 2016.

Mangudya said the initiatives to enhance overall credit quality in the banking sector and clear the NPLs had progressed smoothly. He said the Zimbabwe Asset Management Company (Zamco) had started the process of cleansing the toxic assets from the banks’ balance sheets, while the full operationalisation of the credit reference system by the end of the year was expected to address information asymmetry challenges. Zamco is a special purpose vehicle created to buy secured bad loans.

“These measures will clear the banking sector of serial defaulters while concomitantly fostering a sound credit culture,” Mangudya said.