News24

Five Zimbabwe banks risk closure

2012-02-01 22:32

Harare - Zimbabwe's central bank said on Wednesday it has given five under capitalised banks two weeks to raise cash or face closure, after several banks were forced to shut because of the economic crisis.

At the end of last year five of the country's 25 banks did not have the minimum capital required by law, central bank governor Gideon Gono said.

"Accordingly, all non-compliant institutions... have up to 14 February 2012 to finalise their recapitalisation initiatives or consummate their mergers and acquisitions," he said.

Central bank regulations require commercial banks to have a minimum capital of $12m, while merchant banks must have at least $10m and asset management companies $500 000.

Three commercial and two merchant banks currently lack the required capital, and one of the merchant banks is under curatorship, or administration.

"By no later than 29 February 2012, the Reserve Bank shall engage those institutions that would have failed to identify credible partners and conclude the recapitalisation transactions," Gono said.

The bank will act by March 31 against the institutions which fail to raise the capital.

Zimbabwe's economy is showing signs of recovery from a nearly decade-long downturn following a power-sharing deal after disputed 2008 polls.

Long-time political rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai currently navigate the shaky unity government.

The economic crisis forced several banks to close while others merged or were placed under curatorship.

Comments
  • Sean - 2012-02-01 23:37

    ECONOMIC FREEDOM !!!! LOL !! Just let Malema rule then S.A will go the same way !

      Bennie - 2012-02-02 00:01

      If there is no Economy you are free from it = Economic Freedom ( Guess who Logic?)

      Cracker - 2012-02-02 07:54

      @ Bennie Precisely. Well said.

  • Bennie - 2012-02-01 23:46

    Is there something they cannot bugger up??

      Scouter - 2012-02-02 01:26

      No

      mikeangell61 - 2012-02-02 10:28

      Bennie,Chappies??

  • The-Azanian - 2012-02-02 06:14

    Go gibbs just do your thing. you are the man. ask unpaid workers of airzim which has run-out of old aircrafts, and take a look at cracked zim national highways, now the banks.

      carpejugulim - 2012-02-02 08:24

      and this is the country that South Africa wants to be like and is held up as a shining example ... puhleeze

  • Henri James Christie - 2012-02-02 07:17

    Economic recovery??? In who's opinion??? Probably Mugg Mugabe. He has perfected the ability to kid himself and believe it!!!

  • Kevin Nicklin - 2012-02-02 07:23

    Just a way that the Zimbabwean government legalizes theft of its citizens funds. They did the same thing in 2004/2005. Everyone who banks with those banks looses all their funds. That was the main cause of a mass exidous

  • ivan.coetzee2 - 2012-02-02 08:06

    Total economic implosion around the corner!

  • lindz.kok - 2012-02-02 08:25

    for a guy with 7 degrees moghabe cant even run a spaza shop! goes to show being book learned and iq have nothing to do with each other it seems. a lot of knowlidge and no way of puting it to use

      VaMbozha - 2012-02-02 12:13

      i like your vocabulary dude

  • faerrab - 2012-02-02 08:45

    Most of the usual suspects are always critical of Africa and Africans, Spain, Portugal, Italy, Ireland, Eatern Europe have no money as their bankers and goverments are fraudsters. Many US cities are under administration and potholes in those cities are just as bad as in ZIM. BTW US debt is currently 16,5 Trilion dollars. Zims Debt of Approx. $8bn has been caused by sanctions and US and EU foreign policy .......

      lindz.kok - 2012-02-02 09:09

      yet those citys have lower crime rates and function well because these leaders knows how to alocate funding to the necesary sectors and also how to create capital, they create rather than take. where as zim takes and when they cant take they opress and when that blows up in theyre faces they blame the world for it, and the same people who keeps handing out and relieving the worlds 3rd world is of course europe. they have theyre own problyms now meaning the third world has to become self sevicient and they can take lesons from these indepted countrys like spain italy portugal eastern europe and the u.s.

      faerrab - 2012-02-02 09:34

      Granted that AFrica has issues - US has the largest prison population in the world - Europe battles with pedophilia and human trafficking.

      lindz.kok - 2012-02-02 09:42

      thats true i surpose every country has theyre problyms, i geus i just very much dislike zimbabwe cause of theyre wonderfull leader and s.a's history with zim witch makes me bias.

      Trudy - 2012-02-02 10:37

      @ Lindz. Our anger and resulting biases can be understood, but we need to remember that spewing hatred does not help anyone. In fact, it does more harm

      Peter - 2012-02-02 10:45

      Where do you get your facts from Faer? The usual garbage trotted out from you "masters"? or have you been overseas to the US and seen the decay pesonally? Sanctiona have not caused Zims debt, as "billions of dollars" is being earned by the "GOVT'???? through Marange diamond sales, Chrome ore export, Iron ore export etc etc in the way of revenue, but Muggsy and his crew always cream at least 80% off the top before any accounting takes place. That leaves only 20% of foreign earnings to run the country!!

  • Jayne - 2012-02-02 08:53

    Rob Mugabe before he robs you!!!!

  • sh.fish1 - 2012-02-02 09:11

    THOSE WITH ACCOUNTS BETTER WITHDRAW THEIR FUNDS BEFORE CURATORSHIP

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