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Microfinance institution, Lion  Finance, placed under curatorship two months ago, has re-opened as it  continues with its recovery process.

The Reserve Bank of Zimbabwe on July 26 this year placed the  institution under the curatorship of the Deposit Protection Corporation (DPC) for a period of three months, citing under capitalisation and weak  governance.

The DPC then appointed Ngoni Kudenga of BDO Tax and Advisory services  as the agent to manage the curatorship process.

And following concrete steps towards normalisation of operations, the DPC  said Lion Finance had re-opened its doors to the public on September 16,  but only for lending purposes.

“This notice serves to advise the public that the DTMFI (deposit-taking  micro-finance institution) is now open for lending business with effect  from Monday,  September 16, 2019,” the DPC said, inviting the public to  come and access loans.

“The institution will continue with the loan recovery processes that  are already underway.”

DTMFIs are a special breed of micro-finance institutions, whose  operations, while smaller, are close to that of a commercial bank.

While an ordinary micro-finance institution is in the business of  lending only, the DTMFIs, which are not many in Zimbabwe, are also  licensed to take deposits.

And as the curatorship of Lion Finance remains in effect, the DPC said  the firm would not be taking any deposits in the meantime.

“A plan for the payment of pre-curatorship creditors and depositors  will be announced in due course.”

“The curator is seized with full restoration of the DTMFI’s operations  in the shortest possible time,” the DPC said. — New Ziana.