|Interfin heads for liquidation|
|Thursday, 14 June 2012 11:39|
INTERFIN Banking Corporation could be heading for liquidation, considering the financial outlay required to bring its balance sheet back to health, sources have said.
The bank was on Monday placed under curatorship by the Reserve Bank of Zimbabwe for the next six months, after it ran into liquidity problems.
Mr Peter Bailey of KPMG was appointed the curator.
According to reports, the bank has a capital deficit of more than US$106 million.
“Under such a scenario, it will be quite difficult for the curator to secure an investor who will inject money to plug the capital hole entirely with equity and then recapitalise the bank. After all, the reputation for a bank that would be put under curatorship is difficult to restore.
Interfin is understood to have advanced several millions of dollars to companies in which its anchor shareholder Mr Farai Rwodzi had interests.
As at September 30, 2010, Savanna Tobacco had borrowed about US$18,2 million, while its limit was US$150 000.
Other companies that owe Interfin Bank include Lunar Chickens, Harambee Holdings, RioZim Limited, AMC, Gulliver, Interfin Resources, Fort Enterprises, ART, CZL Incorporated, Gemgrade, ZimCricket, Apex and Covenant Capital.
But analysts have blamed the central bank for taking too long to act.
“Since the beginning of the year, the bank was facing challenges, but it’s not why the central bank did not take action.”
decided to surrender its licence after failing to meet regulatory minimum capital requirements.