ZAMCO clears $250m of NPLs

THE ZIMBABWE Asset Management Company (ZAMCO) says it has so far cleared over $250 million of non-performing loans (NPLs) it acquired prior to entering the resolution stage on April 2017.

Cosmas Kanhai, the company’s chief executive, said the company was on course to recover $1.13 billion from non-performing loans.

“The resolution rate and the recovery rate are the key performance indicators, which measure whether Zamco has maximized the recovery of each NPL. Based on these indicators, Zamco compares well with countries such as China, Korea, Indonesia, Malaysia nad Spain, which have similar Special Purpose Vehicles (SPVs),” he said.

Kanhai said out of the resolved amount, Zamco received cash and assets amounting to $258.49 million- representing a recovery percent 103 percent.

He added that after removing the recovered NPLs, Zamco remains with a book of $882.71 million of acquired values which consists of $155.55 million rehabilitated loans, $648.55 million loan workouts and managed portfolios $78.6 million.

“In addition to the loan book, Zamco is also assisting distressed companies, some of which include Star Africa, Rio Zim, Cotton Company of Zimbabwe, Radar, Borders Timaber, Windmill, Ariston, Africom, Cairns, Turnall, The Wattle Company and Chemplex Corporation,” he said.

Kanhai noted that by end of December 2018, Zamco had issued Treasury Bills worth $980 million to acquire the NPLs, adding that total coupon and maturity payments on the Treasury Bills currently stand on 67.14 million.

“The Treasury Bills have an annual coupon of five percent payable half yearly and tenors mostly ranging from 10 years to 18 years, there were a few exceptions were Treasury Bills with shorter tenors were issued,” he said.

According to Kanhai, the NPLs acquired are mostly concentrated towards the agricultural sector at 43 percent, followed by the manufacturing and financial services sectors at 12 percent and 8 percent respectively.

Source: FinGaz

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