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Kingdom bank crisis continues as people spend nights for $50

by Business reporter
20 Oct 2014 at 06:38hrs | Views

SCORES of people have set up camp at AfrAsia Bank (formerly Kingdom), where they are spending nights in queues hoping they could withdraw as little as $50 the following day, in scenes reminiscent of the cash crisis of 2007 and 2008.

Pushing and shoving have become commonplace at the bank, with irate clients breaking the bank's glass door several times.

AfrAsia Bank is facing acute solvency and cash crises and this has forced it to limit withdrawal amounts to between $50 and $100.

The pavement outside the bank's Bulawayo city centre branch is lined with cardboard boxes where people are usually seen sleeping, squatting or standing around outside the building.

To add insult to injury, the bank charges $3 per transaction, meaning to withdraw $400, clients have to pay as much as $12.

While the scenario outside the bank was a sorry sight on Friday, it was worse inside the building where more people were sleeping on the floor.

Others stood patiently in the queue, but sadly there was no money and there were no withdrawals taking place.

Only two tellers were stationed in their cubicles, engrossed in conversation with each other, while the enquiries clerk was at pains to address questions from a woman who voiced her disapproval about the situation.

AfrAsia spokesperson Sekai Chitemerere said branches had to introduce intermittent daily withdrawal limits to ensure all clients accessed the available cash.

However, clients told a daily publication that the situation was getting worse every day.

AfrAsia bank recently rebranded from Kingdom Bank following a 62,5% share takeover by AfrAsia Bank Mauritius (ABM) and is also making frantic efforts to raise $100 million in fresh capital.


Source - Southern Eye