HomeBusiness DigestTrust debt nears trillion

Trust debt nears trillion

Shakeman Mugari

TRUST Bank’s debt is galloping towards the trillion-dollar mark as the troubled bank battles to repay its loan to the Reserve Bank of Zimbabwe (RBZ).

ana, Arial, Helvetica, sans-serif”>Professional calculation sourced by businessdigest reveals that the suffocating interest rates being charged by the RBZ under the Troubled Banks Fund (TBF) could see Trust’s debt touching the trillion mark late next month.

As at June 1 Trust had arrears amounting to $645 billion. This was after the due diligence report that had been carried in preparation for the Old Mutual/Trust Bank deal that eventually collapsed.

Trust Bank is now the most indebted bank in Zimbabwe. The arrears were further increased after the central bank extended more funds to the bank this month.

Last week the RBZ unveiled a further $6,5 billion as part of desperate efforts to save the bank from collapse.

Banks that access the TBF are charged 300% annually. Sources in the bank confirmed that the bank was struggling to come out of the red. They say the bank continues to have holes in its financial books despite the funds from the RBZ.

The sources also say the bank is battling to contain capital flight due to serious fears by depositors.

The central bank has tried to allay the depositors’ fears by issuing statements that indicate that Trust was coming out of the woods.

Professional calculations gathered from a local broking firm indicate at the current rate Trust’s debt would bloat to $1,3 trillion on July 24 this year.

“On the 54th day which is 24 July Trust Bank’s debt will be $1,3 trillion,’ said the broker who carried out the calculations.

Trust is still looking for a partner to boost both its depositor’s book and balance sheet.

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