GICUMBI - IRIBA Microfinance located in Byumba Sector has been dissolved after failing to collect over Rwf170m from its debtors.

The microfinance suspended operations way back in May due to bankruptcy, and its administrative council sought the assistance of Gicumbi District in recovering loans from defaulters.

The liquidation was announced, on Tuesday, at a meeting which brought together a loan recovery special committee and a liquidator appointed by the National Bank of Rwanda (BNR)

"After failing to raise all IRIBA Microfinance funds in hands of bad debtors, the council was advised by BNR to liquidate and pay the clients their money,” said the chairman of Gicumbi District loan recovery special committee, Ildephonse Butera, who is also the vice mayor for Economic Affairs.

Butera added that IRIBA Microfinance’s bankruptcy is attributed to the fact that its administration issued out loans to clients without security.

"It became difficult for the district committee to recover loans from debtors, who had no security,” added Butera.

The liquidator, Marc Nkunduwemera, said his task is to establish the amount of funds IRIBA Microfinance owes its clients, total amount of non performing loans and the current value of the institutions assets.

"After auctioning all assets and recovering loans in the hands of bad debtors, our next task shall be to pay all clients the bank owes money,” said Nkunduwemera.

The loan recovery meeting resolved to compile a list of all the microfinance loan defaulters, which will be submitted to courts of law by Thursday.

"We have no option but to seek legal redress against the defaulters,” added Nkuduwemera.

Also present was the District coordinator of cooperative societies Appolinaire Habyakare, and the district Executive Secretary, Sinese Museveni.

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