INTERFIN Bank curator, Peter Bailey has cobbled the bank’s revival plan, that entails giving creditors’ shareholding in the institution.
BY OUR STAFF
But the debt to equity swap could hit a brick wall, as one of the bank’s creditors — government — said it was not interested in having shareholding in the beleaguered bank.
Government is owed US$18 million while Indian businessman Jayesh Shah is owed US$25 million.
Finance minister, Tendai Biti said last week, they had been approached by the curator to take up shareholding in the bank.
“The curator came to us and said why don’t you convert debt into equity? We as government said we want our money,” Biti said.
The proposed debt-to-equity swap comes at a time the Reserve Bank of Zimbabwe (RBZ) had extended the curatorship of the bank to December 31 2014.
Initially the extended curatorship period was supposed to end on June 9.
RBZ also announced that withdrawals had been frozen until December 2014 “to preserve the financial standing of the institution, and prevent an uncontrolled withdrawal or removal of funds or assets from the institution”.
In extending the bank’s curatorship RBZ said the extension took “into account developments in the macro-economy that are militating against the injection of new capital, prior to the resolution of those macro-economic, social and political imperatives”.
“These macro issues are matters that go beyond the individual, institutional or shareholder capabilities to resolve in the immediate future,” RBZ said.
“Our telescopic view is that a lot of micro issues will be resolved in the medium and not short-term, due to the multiplicity of far-reaching macro issues that can only be tackled after a range of major events in the immediate horizon, hence the extension.”