adminunder various facilities for on-lending to companies to resuscitate their operations.
The beleaguered bank had US$20 million deposited by Government as part of its contribution to the US$70 million Zimbabwe Economic Trade Revival Facility initiated in conjunction with the African Export and Import Bank and US$30 million the PTA Bank and other Afreximbank facilities.
In a statement the Ministry of Finance said the liquidity crisis at the bank had undermined the performance of the facilities.
“Interfin’s liquidity has now undermined the performance of ZETREF, a US$70 million facility jointly funded by the Government of Zimbabwe and Afreximbank,” the statement reads.
The ministry said out of the US$20 million contributed by Government only US$2,6 million had been disbursed.
“The failure of Interfin to honour its obligations as the ZETREF local administrative agent to the excess of US$17,4 million, coupled with its failure to honour obligations with regards to other Afreximbank and PTA Bank facilities in excess of US$30 million is clearly undermining the efforts of Government to support improved capacity utilisation across the various sub sectors of industry.
“Government will be working with the RBZ to ensure the recovery of ZETREF funds as all other funds targeted at on-lending to industry and currently held up at Interfin,” the statement reads.
Under the ZETREF facility Government disbursed the US$70 million to date and currently US$48,2 million projects have been approved while US$24,5 million has been disbursed.
The failure by Interfin to release funds on request prompted Government to intervene and asked the central bank to investigate the financial status of the bank. Interfin was placed under curatorship up to December while another troubled bank, Genesis Investment Bank is set for liquidation.
Online Reporter