THE Reserve Bank of Zimbabwe (RBZ) has extended to 2014 the curatorship of troubled Interfin Bank Limited in a bid conclude plans to shore up the undercapitalised institution as well as recover funds from debtors.
Report by Victoria Mtomba
Interfin was last June placed under the management of Peter Bailey of KPMG Chartered Accountants after an investigation by the central bank revealed that the bank was teetering on the brink of collapse.
The initial six months’ curatorship was extended last December.
The bank recorded a negative core capital of $92,9 million as at June 2012 and as of December 31, 2011 the bank had insider loans of $2,97 million.
Official figures also showed that as of May 2012, the bank had a total of $36,5 million in unsettled payments.
“The Reserve Bank of Zimbabwe has extended the period of curatorship for Interfin Bank Limited from 9 June 2013 to 31 December 2014. The extension has been necessitated by the need to conclude capitalisation and loan recovery initiatives aimed at rescuscitating the banking institution, for which the curator has made significant progress,” the central bank said yesterday.
“Further, take note that in order to preserve the financial standing of the institution and prevent an uncontrolled withdrawal or removal of funds or assets from the institution, all amounts deposited with or invested with Interfin Bank Limited shall be frozen during this period of curatorship.”
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The bank’s shareholders now face a herculean task to raise more capital following a sharp rise in minimum capital requirements prescribed by the apex bank. After placing the bank curatorship, the RBZ increased minimum capital levels for commercial banks to $100 million from $12,5 million through a staggered capitalisation exercise.
Interfin Bank Limited was registered in October 1999 in terms of the Banking Act. The bank acquired 51% shareholding in CFX Financial Services Limited.
The curator this year indicated that they had plans to retrench 300 employees from the bank.
The bank’s parent company, Interfin Financial Services, was suspended from the Zimbabwe Stock Exchange last year.
