Zimbabwe closes leading bank

The authorities in Zimbabwe have closed down a bank set up by a leading black businessman, the United Merchant Bank.

The central bank was appointed to run UMB's affairs after an audit showed it to be incapable of paying its debts.

A BBC correspondent in Harare says that with confidence in the financial sector dwindling, several other banks have had to issue denials that they too are in trouble.

UMB was set up six years ago by the tycoon, Roger Boka, who said white institutions were reluctant to lend to black entrepreneurs.

Correspondents say its collapse is a blow to government efforts to promote black economic advancement.

From the newsroom of the BBC World Service