Disposal of Interfin assets draws nearer

BH24 Reporter
HARARE – The now defunct financial services institution Interfin Bank is set to dispose its assets to settle a $126,52  million debt owed to creditors after the bank  collapsed.Deposit Protection Corporation (DPC) public relations manager Mr Allen Musadziruma said they were now at an advanced stage on collating all properties which belong to the bank.

“The total value of claims which were proved in the three meetings held for Interfin Bank creditors’ amount to $126,52 million, and creditors will be paid from proceeds realised from asset disposals and loan recoveries.

“As reported in our second meeting of Interfin creditors,  the estimated liquidation dividend  to concurrent creditors is $0,13 per dollar,” he said.

The depositor watchdog institution last year confirmed that it had carried out a forensic investigation on Interfin’s failure which showed that the financial institution had collapsed largely as a result of high levels of non-performing insider loans.

Interfin was placed under judicial management early 2014 after it failed to secure $50 million in fresh capital wihin a three-year curatorship.

Meanwhile, the DPC has said payments to other failed banks, namely, Afrasia, Allied Bank, Interfin Bank, Genesis Investment Bank, Royal Bank and Trust Bank depositors are in progress.

“The  cover level is currently set at $500 per depositor per bank.”What this means is that all clients of the closed bank  with balances  below $500 will be reimbursed in full the amount that was in their account at the time of bank closure provided they submit a duly completed claim form,” said Mr Musadziruma.

He added that the balance above the cover level of $500 is still paid through the liquidation process on a pro-rata basis. As provided for in the law and the public policy objectives, DPC is designed as a risk minimiser.

Besides compensating depositors in the event of a bank failure, DPC also actively participates in the resolution of failing or failed member institutions, curatorship and liquidation of closed banks.

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