HARARE: Reserve Bank of Zimbabwe (RBZ) deputy board chairperson Rita Likukuma will lose her upmarket Greystone property after failing to repay a $10 000 loan to Agribank.
According to a notice published last week by Choruma Marias Valuation & Estate Executives (Pvt) Ltd, Likukuma’s property, alongside other assets of defaulters, will be auctioned at Raylton Sports Club on November 20.
Likukuma’ property is called Stand 483 Greystone Township 8 of Greystone A measuring 4 047 square metres. Improvements include a brick-under-tile, single storey four-bedroomed house with two lounges, guest wing and staff quarters.
Likukuma, who is also a director of a number of companies, was appointed to the RBZ board in July. But Likukuma told NewsDay that she was in discussions with the bank over the loan.
“We are talking to the bank. The bank is aware of our commitment. We had already paid something before the advert came out in the newspapers,” she said. Likukuma said she had borrowed from Agribank and had put the property as collateral.
The development is a blow to Likukuma who was appointed to the RBZ board in July. Her default comes as RBZ and the Ministry of Finance have been urging those who borrow from banks to pay up.
Since the use of the multi-currency regime, banks have resorted to attaching assets as borrowers defaulted due to the harsh economic environment. The ratio of non-performing loans (NPLs) in the banking sector stood at 14,52% as at June 30 from a high of 20,45% in June last year.
In his mid-term Monetary Policy Statement, RBZ governor John Mangudya said all banking institutions were expected to work towards a target NPL ratio of less than 10% by June 30, 2016 and 5% by December 31, 2016.
Mangudya said the initiatives to enhance overall credit quality in the banking sector and clear the NPLs had progressed smoothly. He said the Zimbabwe Asset Management Company (Zamco) had started the process of cleansing the toxic assets from the banks’ balance sheets while the full operationalisation of the credit reference system by the end of the year was expected to address information asymmetry challenges.
Zamco is a special purpose vehicle created to buy secured bad loans. “These measures will clear the banking sector of serial defaulters while concomitantly fostering a sound credit culture,” Mangudya said.
