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SARB to make African Bank announcement

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Johannesburg - South Africa’s Reserve Bank plans to detail later today measures for African Bank Investments Ltd., the stricken Johannesburg-lender whose stock lost most of its value last week after saying it needed R8.5 billion of new funds.

The Reserve Bank will hold a press conference at 4 p.m. in Pretoria today to “announce measures to be taken with regard to African Bank Ltd.,” the bank said in a statement on its website without providing additional details.

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African Bank head offices in Midrand.photo by Simphiwe Mbokazi 453

African Bank’s situation has become critical after saying chief executive and founder Leon Kirkinis resigned, losses would be at a record this year and it would need to tap investors for funds for the second time in less than a year as bad loans mount.

The stock dropped to 31 cents on August 8, from 6.88 rand on August 5, the day before a trading update revealed that the bank expects a record 7.6 billion-rand loss this year and Kirkinis was stepping down after 23 years with the company. - Bloomberg News

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