VENTURES AFRICA – African Bank Investments Limited (ABIL), which used to be the biggest provider of unsecured loans, is currently collecting around $230 million of debt a month, according to auditing firm PwC executive, Tom Winterboer.
“The collections are at least as good as we expected, and have even been slightly above,” Reuters, citing CNBC Africa, quoted Winterboer as having said.
Winterboer added that the company, which had told Ventures Africa that it did not have plans of expanding to other parts of Africa, had applied for a new banking license and re-listing on the JSE.
ABIL was saved by the South African Reserve Bank (SARB) in August this year after it was battered by a wave of non-performing loans because debtors could not pay back their loans.
It’s core market was the low-income market in South Africa. And this is the social sector that has been battered more than anyone else by tough economic conditions. This is where retrenchments are happening.
Winterboer was appointed by the central bank to lead Abil’s repair, according to Reuters.
“We’ve actually submitted a new banking application for a new licence, for the good bank. That went in yesterday,” Winterboer added on the CNBC Africa.
In August this year, SARB said it had placed ABIL under curatorships with immediate effect. The bank said ABIL will get a R10 billion ($916.6 million) capital injection and protection for creditors.
SARB has also bought Abil’s ‘bad’ book for R7 billion ($641.2 million) as part of its efforts to save the unsecured lender.