Update on Closed Banks

Liquidation of Closed Banks

The Corporation continued to execute its mandate as liquidator of closed banks through the realization of assets and payment of liquidation dividends to creditors and uninsured depositors. DPC is currently undertaking the liquidation of five (5) closed Banks following the finalization of the liquidation of Genesis Investment Bank. Total recoveries in cash, treasury bills and properties were ZWL713.6 million, which translate to a 264% recovery rate as at 31 December 2022. Total dividends paid out

to concurrent creditors of the six (6) failed CBIs under liquidation increased by 87% from ZWL109.4 million in ZWL

ANNIVERSARY

December 2021 to ZWL204.4 million in December 2022. This translates to an average dividend payout of ZWL1.08 per dollar to concurrent creditors. The debt recovery process has reached advanced stages for most of the Banks in liquidation and the specific status of each Banking institution under resolution is discussed hereunder.

1 Royal Bank Limited: (In Final liquidation) – Closed 27 July 2012

As at 31 December 2022 about ZWL938, 275 had been paid to preferred creditors from the two dividend payouts whilst ZWL207, 931 was paid to a secured creditor. Creditors of Royal Bank are likely to be paid a dividend during the first half of 2023, following an out of Court settlement between the Corporation and Royal Bank Directors, that resulted in payment of ZWL9 ,283 ,572.84 by the Royal Bank directors, in favour of the Bank as full and final settlement of the directors’ obligations. No further recoveries are anticipated from the Bank’s loan book.

2 Trust Bank Corporation (In Final Liquidation): Closed 6 Dec 2013

At report date, about ZWL1.5 million had been paid to preferred creditors whilst concurrent creditors were paid ZWL6.6 million or ZWL0.41 per dollar from the five (5) dividend payouts. Secured creditors have so far been paid a total of ZWL834,043. Negotiations with Trust Holdings Limited (THL) to settle the Bank’s obligations in exchange for the Bank’s remaining assets have reached an advanced stage whereby the Corporation and THL have signed a Deed of Settlement and the transaction will be concluded subject to fulfilment of conditions precedent.

3 Interfin Bank (In Final Liquidation): Closed 31 December 2014

As at 31 December 2022, about ZWL1.7 million had been paid out as dividend to the Bank’s preferred creditors whilst concurrent creditors were paid ZWL129.2 million or ZWL1.62 per dollar from the thirteenth dividend payouts. About ZWL49.6 million, of the funds paid to concurrent creditors was interest dividend. The Corporation is in the process of disposing five (5) of the Bank’s remaining immovable assets to conclude the liquidation process.

4 Allied Bank (In Final Liquidation): Closed 8-Jan-2015

As at 31 December 2022, the Bank had paid ZWL436, 357 to secured creditors and ZWL558, 379 to preferred creditors. Following the payment of ZWL16.7 million on 16 December 2021, from Trebbo & Khays in favour of Allied Bank (In Liquidation) in full and final settlement of the Bank’s claim, concurrent creditors were paid ZWL11.5 million, which translate to ZWL1.00 per every dollar owed.The Corporation continues to explore ways to facilitate the release of the USD1.1 million, which are funds blocked by the USA Office of Foreign Assets Control (OFAC).

5 Afrasia Bank Zim Limited (In Final Liquidation): Closed 24-Feb-2015

Cumulatively, the Bank’s concurrent creditors have been paid ZWL53.9 million or 140 cents per dollar whilst preferred creditors have received ZWL3.5 million in ten dividend payouts. Disposal of the remaining assets, mainly the Natvest properties in Mutare, is still ongoing. Once all the assets have been disposed, any residue after settlement of

liquidation expenses and conveyancing costs will be paid to the shareholders.

6 Capital Bank (In Provisional Liquidation) – Closed: 4 June 2014

Progress in winding up the affairs of Capital Bank has been stalled due to a legal wrangle between Renaissance Financial Holdings (RFH) and the Liquidator of Capital Bank (Petwin Executor& Trust Company) over the ownership of 51,341,100 First

Mutual Holdings ordinary shares. The Liquidator has since requested the intervention of the Master of High Court to determine whether the shares belong to RFH or estate of the closed Bank. Table 6 overleaf summarizes the status of Banks under resolution as at 31 December 2022: