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CFX reopening at advanced stage

Shakeman Mugari

CFX Financial Services’ plans to reopen its doors to the public have reached an advanced stage with reports this week that the bank has finished consultations with shareholders and major corp

orate customers.

The bank, which has been under curatorship for the past 10 months, finished consulting with stakeholders last week and is now scheduled to open in November.

Sources last night said the nagging shareholder issue had been agreed upon and lawyers were drafting the final set of papers reflecting the new scheme.

Marathon meetings to work out the finer details were being held, with sources saying the Reserve Bank of Zimbabwe had approved the reopening. Other crucial meetings were held with the CFX’s corporate clients last week to enlist their support to boost the book when the bank opens. Under the new plan, the bank will close branches in smaller towns.

“At most we are planning to remain with at least six major branches because management believes the market has changed significantly since we closed last year,” said a CFX source. Part of the plan, the source said, would be to collapse the commercial and the merchant banks into one. The bank has also recalled key staffers in the information technology (IT) department in preparation for the reopening. The bank will close some of its in-store branches to streamline operations. CFX will also reduce its staff complement by more than 50% to cut costs in line with reduced business and fewer branches.

“Part of the plan will be to reduce the workforce and then close some of the branches. Final meetings are going to be held in the next three weeks to come up with a final decision on those issues,” said the source.

Meanwhile, the bank’s collapsed asset management arm will make payouts to its creditors on November 16.

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