Depositors' $186 million locked in collapsed banks

The Depositors Protection Corporation (DPC) has said $186 million owed to 55 000 depositors is held up in six collapsed banks.

The regulatory authorities said they are working on measures to ensure depositors are paid outstanding funds.

Under the Deposit Protection Corporation Act Chapter 24:29, the DPC's mandate has been expanded to involve the liquidation and curatorship of banks.

The Act enables them to look after the interests of the depositors under the Banking Act.

The banks include Royal , Trust, Genesis, Allied, Interfin and AfrAsia.

According to ZBC, DPC Chief Executive Officer, John Chikura said $6,34 million will initially be paid to depositors as policies are being put in place to recover outstanding savings.

"Indeed the six collapsed banks owe depositors US$186 million and we are doing our best to ensure that such arrears are cleared. There are however some processes that need to be done," said Chikura.

 In January Trust Bank paid up to the maximum insurable limit of $500 per depositor.

In the 2015 monetary policy statement, Reserve Bank of Zimbabwe (RBZ) Governor, John Mangudya said bank closures experienced in the past five years are normal in a challenging economic climate, insisting that the financial sector is still safe and viable.