DPC says payments to date for 6 banks total US$3 million

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A total of 14,477 depositors of closed banks have been paid by DPC since its inception with 3482, having been paid during the Zimbabwe Dollar era and 10,955 after the introduction of the multi-currency system.

THE Deposit Protection Corporation has to date paid US$3 million as compensation to depositors of six closed banks, the bulk of which went to AfrAsia depositors.

DPC Public Relations Officer Caroline Masiyandima said the corporation had paid US$3 001 455 to 10 955 depositors from six failed banks. The payments were made through bank transfers and mobile money transfer systems.

She said a total US$1,78 million had been paid out to 5 453 AfrAsia depositors, US$499 298 to 1 415 Allied Bank clients, 3 097 depositors from Royal Bank have received US$354, 697; 556 Interfin depositors received US$221 985; 372 from Trust Bank received US$130 689 and 62 depositors from Genesis received $8 821.

“Payments to Genesis, Royal, Trust, Allied, Interfin and AfrAsia depositors are still on-going. We urge all those depositors who have not yet submitted their claims to get in touch with us,” said Masiyandima.

“The cover level for depositors is currently set at $500 per depositor per bank. What this means is that all clients of the closed bank with balances below $500 will be reimbursed in full the amount that was in their account at the time of bank closure provided they submit a duly completed claim form.” Any balance above the cover level of $500 is still paid through the liquidation process on a pro-rata basis.

In view of the Deposit Protection Fund’s current legislative framework, no compensations have been made to depositors of failed banking institutions whose resolution methods did not entail liquidation, namely High Veld, Intermarket Bank, Intermarket Discount House, the Original Trust Bank, Royal Bank, and Barbican Bank whose assets were sold to ZABG in 2005.

Other Depositors who failed to receive compensation from the fund include those from Capital Bank, which has not yet been placed under a provisional or final liquidation order and from Tetrad Investment Bank, which is currently under judicial management as well as depositors with banking institutions that failed prior to the establishment of the DPC, namely United Merchant Bank (1998), Universal Merchant Bank (2000), First National Building Society (2002), Zimbabwe Building Society(2003); and Prime Bank.

A total of 14,477 depositors of closed banks have been paid by DPC since its inception with 3482, having been paid during the Zimbabwe Dollar era and 10,955 after the introduction of the multi-currency system.

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