adminThe Agricultural Development Bank of Zimbabwe, through its auctioneers, said yesterday it would dispose of over 20 immovable properties across the country to recover its money from various loan defaulters. While it could not be immediately established how much the bank is owed, it stands to recover amounts running into hundreds of thousands of dollars from the disposal of the properties.
There is a general concern about high cases of non-performing loans (NPLs) which are clogging the potential of local banks to attract new funding as well as extend more financial resources to various sectors of the economy.
This resulted in the establishment of the Zimbabwe Asset Management Company by the Reserve Bank which is tasked with acquiring NPLs from banks in a bid to free up their balance sheets.
A statement issued yesterday by valuation and estates firm, Choruma Marias, indicated the firm had been “duly instructed by the Agricultural Development Bank of Zimbabwe Limited” to sell by public auction at least 22 immovable properties across the country on November 6. The properties are located in Bulawayo, Gweru, Harare, Kariba, Kwekwe, Murombedzi, Mutare and Zvishavane.
“The sale is conducted in terms of the rules of the High Court which provided that it shall be without reverse but subject to conditions that, the bank requires to be satisfied that the highest prices offered is reasonable, having regard to the circumstances of the time and place and state of property,” Choruma Marias Valuation and Estates Executives said.
Agribank is struggling to return to profitability having posted a $9 million loss for the year ended December 2014 with its financial performance hit by impairment charges as well as reduced lending due to the tight liquidity situation in the economy. A recent $30 million capital injection into the financial institution by government is, however, expected to boost the bank’s performance. Under capitalisation had impacted on Agribank’s ability to on-lend and boost its income. — New Ziana.
Online Reporter