Govt compensates depositors for 2019 loses

GOVERNMENT through the Deposit Protection Corporation (DPC) has started compensating small depositors who suffered losses due to the 2019 exchange rate movement.

The compensation programme running from November 8, 2021 to November 7, 2022 is funded through the government-owned Kuvimba Mining House project which had already availed US$400 000 to DPC for distribution.

In a recent statement, DPC chief executive officer Vusilizwe Vuma said depositors who had balances of US$1 000 and below during the time of the exchange rate movement were eligible for compensation.

“The DPC wishes to advise the banking public that in the meantime, the initial tranche of US$400 000 will be allocated to eligible depositors who had balances of US$1 000 and below in the deposit-taking microfinance institutions, to pay for the loss of deposit value occasioned by exchange rate movement from US$ equivalent to $1 to US$1 equivalent to $2.5, as at February 2019.

“In other words, a depositor who had US$1 000 in his or her account would get US$600,” Vuma said.

Vuma also said that a depositor who had US$500 would get US$300, whilst a depositor who had US$400 would get US$240. A depositor who had US$300 would get US$180; a depositor who had US$200 would get US$120 whilst a depositor who had US$100 would get US$60. A depositor who had US$50 would get US$30 whilst a depositor who had US$10 would get US$6.

Vuma advised qualifying depositors to submit their claims as at February 20 2019 within a period of 12 months running from November 8, 2021 to November 7, 2022 to their respective registered deposit-taking microfinance institutions, namely African Century Limited; Getbucks Microfinance Bank; EmpowerBank Limited; Zimbabwe Women’s Microfinance Bank; Success Microfinance Bank Limited; and Lion Microfinance Limited.

“The deposit-taking microfinance institutions would periodically submit the schedule of claims to the (DPC) for verification, validation, and subsequent remittance of the requisite payment to the deposit-taking microfinance institutions for onward settlement to eligible depositors in US$ without incurring transaction costs.

“The minister of Finance and Economic Development, DPC, the Reserve Bank of Zimbabwe, and the banking sector have reached an agreement in that regard. After compensating depositors of deposit-taking microfinance institutions, subsequent tranches for disbursement would be allocated to remaining deposit-taking institutions namely commercial banks, building societies, savings bank, and infrastructure bank, as and when additional funds are availed.’’

“For the avoidance of doubt, the window for compensation of eligible deposit-taking microfinance institutions depositors will be open for a period of 12 months from November 8 2021 to November 7 2022,” Vuma said.

by Rumbidzai Ngwenya