DPC to compensate small depositors

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Government has availed USD400 000 to the Deposit Protection Corporation
{DPC} through Kuvimba Mining House for the compensation of small depositors for the loss of value incurred following the movement of the exchange rate from USD1: RTGS1.

Finance and Economic Development Minister, Mthuli Ncube announced in his 2021 national
budget that government would compensate depositors who had balances of USD1 000 and below for the loss of valued incurred due to the movement of the exchange rate.

In a statement, the DPC Chief Executive Officer, Vusilizwe Vumasaid depositors who who had funds in Deposit Taking Micro-finance Institutions {DTMFIs} would get their compensation in full.

“In other words, a depositor who had USD1000 in his or her account would get USD600 being the total loss value, “he said.

Vuma said the government had availed the USD400 000 through Kuvimba Mining House for
distribution to vulnerable depositors, adding that several scenarios were evaluated to identify the best method that offered the best compensation.

“Accordingly, qualified depositors are advised to submit their claims as at 20 February 2019 within a period of 12 months running from 8 November 2021 to 7 November 2022 to the respective registered DTMFIs namely African Century Limited, Getbucks Microfinance Bank, Empower Bank Limited, Zimbabwe Women’s Microfinance Bank , Success Microfinance Bank Limited and Lion Microfinance Limited,” he said.

He said the Ministry of Finance and Economic Development, DPC, the Reserve Bank of Zimbabwe and the banking sector had agreed that the DTMFIs would periodically submit a schedule of claims to the DPC for verification and validation.

The requisite payment would be subsequently paid to the DTMFI’s for onward transmission to the eligible depositors in USD without any transaction costs.

“After compensating depositors of DTMFI’s, subsequent tranches for disbursement would be
allocated to remaining deposit-taking institutions namely commercial banks, building societies, savings banks and infrastructure bank s as and when funds are availed,” he said.

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