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Account holders with closed banks to be paid by April
07 Feb 2016 at 03:13hrs | Views
THE Deposit Protection Corporation (DPC) and the Reserve Bank of Zimbabwe (RBZ) have finished compiling the list of Zimbabwe dollar account holders whose money was locked in banks that were closed after the country introduced the multi-currency system.
Six banks - AfrAsia Bank Zimbabwe, Interfin, Trust Bank, Allied Bank, Capital Bank and Royal Bank - closed operations since dollarisation in 2009, with DPC charged with compensating their account holders. RBZ governor Dr John Mangudya revealed that the central bank was working with the DPC to ensure that account holders are paid by the end of April.
"We are currently working with the DPC to ensure that account holders whose balances were held with the closed banks are paid fully by the end of April 2016," said Dr Mangudya. The demonetisation of the Zimbabwe dollar which was announced by Finance Minister Patrick Chinamasa in the 2014 National Budget and in the Monetary Policy Statement of January 2015, commenced on 15 June 2015 and ended on 30 September 2015.
According to the Government, demonetisation was done to promote consumer and business confidence by providing credibility to the multi-currency system and legally retiring the Zimbabwe dollar.
"An amount of US$9 million out of a budget of US$20 million was converted at the closure of the demonetisation programme," Dr Mangudya said.
When the programme started in June, the RBZ stated that accounts with balances of zero to US$175 quadrillion would be paid a flat US$5 whereas accounts which had a balance of above US$175 quadrillion would be paid the equivalent value after applying the UN exchange rate of US$/$35 quadrillion or US$35 000 (revalued).
Speaking on the process, Bankers Association of Zimbabwe (BAZ) chief executive officer Mr Sij Biyam said the process went smoothly with all active accounts having been credited with the relevant demonetisation amounts.
Cash customers got their exact US$ equivalent of the converted amount, starting from US1 cent up to US$50 and where the US$ equivalent exceeds US$50, payment was made through respective bank accounts while corporate customers' US$ equivalent were credited into their respective bank accounts.
On the notes issued in 2009, walk in customers were paid $2 for ZW$500, 40c for ZW$100, 20c for ZW$50, 8c for ZW$20, 4c for ZW10 and 2c for ZW$5 while on the notes issued in 2008, 40c for ZW$100 000 000 000 000 (ZW$100 trillion), 20c for ZW$50 trillion, 8c ZW$20 trillion and 4c for ZW$10 trillion is being paid. The DPC confirmed that the list of beneficiaries to be compensated was available as the central bank had compiled it.
Six banks - AfrAsia Bank Zimbabwe, Interfin, Trust Bank, Allied Bank, Capital Bank and Royal Bank - closed operations since dollarisation in 2009, with DPC charged with compensating their account holders. RBZ governor Dr John Mangudya revealed that the central bank was working with the DPC to ensure that account holders are paid by the end of April.
"We are currently working with the DPC to ensure that account holders whose balances were held with the closed banks are paid fully by the end of April 2016," said Dr Mangudya. The demonetisation of the Zimbabwe dollar which was announced by Finance Minister Patrick Chinamasa in the 2014 National Budget and in the Monetary Policy Statement of January 2015, commenced on 15 June 2015 and ended on 30 September 2015.
According to the Government, demonetisation was done to promote consumer and business confidence by providing credibility to the multi-currency system and legally retiring the Zimbabwe dollar.
"An amount of US$9 million out of a budget of US$20 million was converted at the closure of the demonetisation programme," Dr Mangudya said.
When the programme started in June, the RBZ stated that accounts with balances of zero to US$175 quadrillion would be paid a flat US$5 whereas accounts which had a balance of above US$175 quadrillion would be paid the equivalent value after applying the UN exchange rate of US$/$35 quadrillion or US$35 000 (revalued).
Speaking on the process, Bankers Association of Zimbabwe (BAZ) chief executive officer Mr Sij Biyam said the process went smoothly with all active accounts having been credited with the relevant demonetisation amounts.
Cash customers got their exact US$ equivalent of the converted amount, starting from US1 cent up to US$50 and where the US$ equivalent exceeds US$50, payment was made through respective bank accounts while corporate customers' US$ equivalent were credited into their respective bank accounts.
On the notes issued in 2009, walk in customers were paid $2 for ZW$500, 40c for ZW$100, 20c for ZW$50, 8c for ZW$20, 4c for ZW10 and 2c for ZW$5 while on the notes issued in 2008, 40c for ZW$100 000 000 000 000 (ZW$100 trillion), 20c for ZW$50 trillion, 8c ZW$20 trillion and 4c for ZW$10 trillion is being paid. The DPC confirmed that the list of beneficiaries to be compensated was available as the central bank had compiled it.
Source - sundaynews
