GetBucks seeks RBZ deadline extension
LIVINGSTONE MARUFU
Listed microfinance firm, GetBucks Limited, is seeking more time to meet the regulatory minimum capital requirement set by the Reserve Bank of Zimbabwe (RBZ), Business Times can report.
The RBZ set US$5m as the minimum capital requirement for deposit taking microfinance banks to be achieved by December 31,2021.
But, GetBucks at ZWL$192m or US$2m, is way off the mark.
“Shareholders will pursue equity transactions to bridge the gap between the minimum capital requirement and the current regulatory requirement.
“However, given the limited amount of time to December 2021 it is unlikely that the regulatory capital will be met, and the regulator has been approached with a request to extend the deadline,” GetBucks chief finance officer Wimbayi Chigumbu said.
In its trading update GetBucks’ profit plunged 41% to ZWL$17m in the quarter to September 30 2021 from ZWL$29m reported in the same period last year.
The easing of lock down measures increased business activity in the economy and with that inflation started going up due to increased demand for foreign currency.
“The local currency lost ground against the US$ in the informal market during this quarter triggering an increase in the month-on-month inflation figures rising from 2.6%at the beginning of the quarter and ending at 4.7% in September, bringing an end to relatively long periods of stability that had been enjoyed thus far,” Chigumbu said.
He said during the quarter under review, the institution’s total income rose 123% to ZWL$167m during the period under review from ZWL$75m total income attained in the same period in prior year.
The loan book closed off at ZWL$202m compared to September 2020’s ZWL$69m due to increased funding lines.
Chigumbu said the effects of the Covid-19 pandemic began to weigh off during this quarter resulting in improved loan sales and transactional volumes of the institution.
Going into the future, GetBucks believes that exchange rate stability is the key to economic stability and it is proving a formidable challenge.
Listed microfinance expects productivity must match money supply growth and GetBucks is optimistic that a forecast of another good agriculture season, economic turnaround is expected.
The institution will strategically look to increase its portfolio of foreign currency generating business leveraging on the Authorised Dealer license.
