21 December 2012

Zimbabwe: Interfin Curatorship Extended

THE Reserve Bank of Zimbabwe yesterday extended the curatorship period for Interfin Bank to June next year as efforts to resuscitate the failed financial institution continue. Interfin is one of the banks

that fell by the wayside this year following revelations of gross mismanagement.

The central bank placed the bank under what it termed "recuperative curatorship" on June 11 this year.

"Take notice that the RBZ in full has extended the period of curatorship for Interfin Bank Limited from 11th December, 2012 to 9th June 2013. At the same time, the Reserve Bank has extended the appointment of the curator accordingly," the central bank said in a statement.

Mr Peter Bailey of KPMG Chartered Accountants is the curator for the bank.

Other banks that were closed this year include Genesis and Royal Bank.

Interfin, born out of a merger with troubled CFX Bank, was at its closure deemed to be in an "unsafe and unsound" financial position owing to undercapitalisation, allegations of abuse of corporate structures, high levels of nonperforming insider loans and other ills.

"The primary purpose of the curatorship is to protect depositors, preserve the assets of the Interfin Bank Limited and protect the stability of the financial system," the RBZ said when closing the bank.

Mr Bailey is expected to recommend the way forward on the future of Interfin Bank at the end of the curatorship, which is still subject to further extensions.

New Ziana

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