News / National
Chiyangwa's stands worth $2.1 million under threat
04 Mar 2015 at 12:28hrs | Views
STEWARD Bank, the banking unit of Econet Wireless, is considering swapping residential stands to the tune of $2.1 million to recover funds borrowed by a property firm owned by businessman Phillip Chiyangwa.
The documents also show that the bad debts also accrued from "furniture loans" totaling $23.2 million linked to Lifestyle Holdings and account for the bulk of the outstanding $31 million owed by debtors.
Chiyangwa's Pinnacle Property Holdings is owing $2,170,763.78 despite surrendering collateral worth $720,000 as security.
Steward Bank has a proposal to swap a block of residential stands with this debt. The proposal is being considered by the Board Risk and Compliance Committee.
The bank is trying to recover non-performing loans, mainly resulting from its predecessor TN Bank, but is not keen to transfer the debts to the Zimbabwe Asset Management Corporation (Zamco), a bad loan special purpose vehicle set up by the central bank last year to clean balance sheets of financial institutions.
The documents also show that the bad debts also accrued from "furniture loans" totaling $23.2 million linked to Lifestyle Holdings and account for the bulk of the outstanding $31 million owed by debtors.
Steward Bank has a proposal to swap a block of residential stands with this debt. The proposal is being considered by the Board Risk and Compliance Committee.
The bank is trying to recover non-performing loans, mainly resulting from its predecessor TN Bank, but is not keen to transfer the debts to the Zimbabwe Asset Management Corporation (Zamco), a bad loan special purpose vehicle set up by the central bank last year to clean balance sheets of financial institutions.
Source - news
