A total of about $50 million raised by the Government and regional financial institutions, meant for various facilities targeted at supporting the revival of productive sectors, is stuck in Interfin Bank.
Interfin Bank, now under recuperative curatorship, managed the Government’s $20 million contribution under the $70 million Zimbabwe Economic and Trade Revival Facility it jointly funded with Afreximbank.
Companies have also failed to access resources amounting to $21 million availed by the PTA Bank under different facilities.
In addition, other funds stuck in Interfin include $9,7 million from Afreximbank, being the balance unpaid from $15 million extended to Interfin for on-lending to clients under a facility separate from ZETREF.
In a statement yesterday, the Ministry of Finance said out of the $20 million only $2,6 million was released in October last year. Thereafter, Interfin failed to release an additional $5 million requested by the Government despite numerous appeals for the release the funds.
But this prompted the Ministry of Finance to request the Reserve Bank of Zimbabwe to investigate the operations of the bank. Interfin Bank was then placed under curatorship for six months following accusations that controlling shareholders abused depositors’ funds for their own benefit. Now the Ministry of Finance says the performance of ZETREF is being hampered by liquidity challenges at Interfin.
“Interfin’s illiquidity has now undermined the performance of our ZETREF,” read part of the statement by the Ministry of Finance.
ZETREF, a $70 million facility, was signed between the Government and Afreximbank in 2010 to revive the productive sectors.
The Government contributed $20 million to the facility while $50 million came from Afreximabnk. A total of 11 banks are participating under the ZETREF facility through accessing funding for their clients for capital expenditure and working capital.
Under the facility, participating banks would submit their projects to Interfin. After approvals, banks would submit requests for drawdowns to Afreximbank.
To date, at total of $24,5 million has been disbursed since August 2010.