Deposit Protection Fund CEO John Chikura
THE Deposit Protection Fund (DPC) says it had set aside close to US$1 million to pay out qualifying Zimbabwe dollar account holders of three closed banks under the demonetisation programme but the process has experienced a slow uptake.
DPC has since advised that it will complete the process on April 30 2016.
DPC public relations officer Allen Musadziruma said they were experiencing a slow uptake of the compensation fund ahead of the deadline.
It is paying the equivalent US$ amount for each account balance as at 31 December 2008 converted by the UN exchange rate of US$1 to Z$35 quadrillion.
Only holders of active deposit/savings accounts as at 31 December 2008 are eligible for payment whilst holders of investment accounts are not eligible for payment.
“About $929,061 is expected to cover clients of the three closed banks under the demonetization programme. We have however witnessed a slow uptake despite making efforts to publicise the exercise,” he said.
Musadziruma said 66,887 depositors are from Allied Bank, 55,319 from Afrasia and 28,319 from Interfin Bank.
DPC is paying $5 for every account that was held with a balance of zero up to 175 quadrillion Zimbabwe dollars.
A number of banks and financial institutions collapsed in the 2003-2004 banking sector crisis, due to liquidity constraints with a similar crisis gripping the banking sector after 2009.
Post-dollarisation a total of eight banks namely Genesis, Capital, Interfin, AfrAsia, Tetrad, Royal, Trust and Allied, went under prejudicing depositors of their hard-earned cash and destroying trust in banks, key financial intermediaries. FinX
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