Biti revealed that US$47,4 million had been abused by Interfin which has been put under curatorship by the Reserve Bank of Zimbabwe – RBZ.
Biti said – Interfins liquidity has now undermined the performance of our Zimbabwe Economic Trade Revival Facility – ZETRF – a US$70 million facility jointly funded by the Government of Zimbabwe and the Afreximbank.
He said signitories to the facility agreement were his ministry on behalf of the government, Afreximbank and four initially participating banks, namely FBC Banking Corporation Limited, NMB Bank Limited, TN Bank Limited and BancABC Limited, as well as Interfin Bank Limited as the Local Administrative Agent.
He said 11 commercial banks are currently participating under ZETREF.
He said the balance of the funds currently held up at Interfin Bank Limited, which was put under curatorship, from the governments contribution of US$20 was made on October 24, 2011.
The request for release had been made by Afreximbank in September last year, Biti said.
Biti said – Releases were not forthcoming from Interfin, notwithstanding follow-ups through meetings and letters over the expeditious processing of ZETREF loan applications of companies – e development which prompted the Ministry of Finance to request the RBZ, in April, 2012 to investigate Interfin and ascertain the financial situation at the commercial bank.
Biti said other funds stuck at Interfin Bank Limited include US$9,7 million from Afreximbank, being the balance unpaid from US$15 million extended to Interfin for on lending to clients under a facility separate from ZETREF.
The minister revealed that the problems at Interfin Bank Limited were also compromising companies access to resources amounting to more than US$21 million availed to the PTA Bank Limited under facilities targetted at supporting the revival of Zimbabwes productive sectors.
Interfin was suspended from the Zimbabwe Stock Exchange.
It was the least capitalised financial institution standing at about US$400 000 in total.
Problems began when customers were allowed to withdraw a maximum of US$200 daily from the entity in April, which then dwindled to US$100 in May and finally only US$50 last month before its doors were shut by the RBZ.
Post published in: Business