Zim govt supports banks immunity extension

Government says it supports the extension of immunity from lawsuits to banks whose accounts were raided by the Reserve Bank of Zimbabwe (RBZ) to fund its quasi-fiscal activities during the hyperinflationary era.

Public hearings on the RBZ Debt Assumption Bill saw financial institutions highlighting the need for the legislation to have a provision extending immunity from lawsuits to banks whose accounts were raided by the central bank.

Finance and Economic Development Minister Cde Patrick Chinamasa says his ministry fully supports the extension of the immunity to banks in the spirit of fairness and transparency.

The commitment by government to extend the immunity to banks has been welcomed with economic analyst Brains Muchemwa saying it will help restore the integrity of the banking sector.

Section 4 (4) of the proposed bill states that "no  action or proceeding shall be commenced or continued against the RBZ in respect of a prior debt assumed by the minister on  behalf of the state."

In 2013, the High Court ordered Standard Chartered Bank to refund China Shougang International, which lost US$48 000 seized from its foreign currency account by the RBZ raising fears of a series of litigations.