Business / Companies
Central bank to liquidate Interfin
01 Jan 2015 at 06:57hrs | Views
THE Reserve Bank of Zimbabwe (RBZ) yesterday announced that the curatorship period of Interfin Bank Limited expired yesterday, with the central bank saying it had applied to the High Court to have the bank liquidated.
The move to liquidate Interfin is an indicator that the RBZ had failed to rescue the bank.
"The primary purpose of placing the banking institution under curatorship was to protect depositors and preserve assets of the banking institution, with the intention of resuscitating the bank to become a viable concern," reads the notice.
RBZ said various initiatives and attempts had been conducted to resuscitate the bank by the curator.
"A total of 12 potential investors were considered in resuscitating the banking institution, but none of the proposals put forward yielded any positive results and the institution's condition continued to deteriorate in the absence of concrete recapitalisation plans," the central bank, which is the registrar of banking institutions, said.
"The Reserve Bank determined that it was no longer feasible to resuscitate the banking institution as a viable concern as all efforts to recapitalise the banking institution have yielded no positive results and any further extension of curatorship would only further prejudice depositors and creditors."
RBZ said the action taken against the banking institution was considered to be in its best interest, its depositors, creditors and the public in general.
Interfin Bank Limited was registered in October 1999 in terms of the Banking Act.
The bank acquired 51% shareholding in CFX Financial Services Limited.
Interfin's parent company, Interfin Financial Services, was suspended from the Zimbabwe Stock Exchange in 2012.
The move to liquidate Interfin is an indicator that the RBZ had failed to rescue the bank.
"The primary purpose of placing the banking institution under curatorship was to protect depositors and preserve assets of the banking institution, with the intention of resuscitating the bank to become a viable concern," reads the notice.
RBZ said various initiatives and attempts had been conducted to resuscitate the bank by the curator.
"A total of 12 potential investors were considered in resuscitating the banking institution, but none of the proposals put forward yielded any positive results and the institution's condition continued to deteriorate in the absence of concrete recapitalisation plans," the central bank, which is the registrar of banking institutions, said.
RBZ said the action taken against the banking institution was considered to be in its best interest, its depositors, creditors and the public in general.
Interfin Bank Limited was registered in October 1999 in terms of the Banking Act.
The bank acquired 51% shareholding in CFX Financial Services Limited.
Interfin's parent company, Interfin Financial Services, was suspended from the Zimbabwe Stock Exchange in 2012.
Source - Southern Eye
