Harare, (New Ziana) – Microfinance institution, Lion Finance, placed under curatorship two months ago, has re-opened as it continues with its recovery process.
The Reserve Bank of Zimbabwe on July 26 this year placed the institution under the curatorship of the Deposit Protection Corporation (DPC) for a period of three months, citing under capitalisation and weak governance.
The DPC then appointed Ngoni Kudenga of BDO Tax and Advisory services as the agent to manage the curatorship process.
And following concrete steps towards to normalise operations, the DPC said Lion Finance had re-opened its doors to the public on September 16, but only for lending purposes.
“This notice serves to advise the public that the DTMFI (deposit-taking micro-finance institution) is now open for lending business with effect from Monday, 16th September 2019,” the DPC said, inviting the public to come and access loans.
“The institution will continue with the loan recovery processes that are already underway.”
DTMFIs are a special breed of micro-finance institutions, whose operations, while smaller, are close to that of a commercial bank.
While an ordinary micro-finance institution is in the business of lending only, the DTMFIs, which are not many in Zimbabwe, are also licensed to take deposits.
And as the curatorship of Lion Finance remains in effect, the DPC said the firm would not be taking any deposits in the meantime.
“A plan for the payment of pre-curatorship creditors and depositors will be announced in due course,” the DPC said.
“The curator is seized with full restoration of the DTMFI’s operations in the shortest possible time.”