Zimpapers Logo

Allen Musadzimura

Charity Ruzvidzo Business Reporter
THE Deposit Protection Corporation (DPC) has paid about 16 percent of the value of insured deposits from Allied Bank following the collapse of the banking institution in January.DPC has said it was able to meet its statutory obligation of compensating depositors of failed banking institutions as per its mandate.

Genesis, Trust, Royal and Interfin banks have folded with Allied and AfriAsia banks becoming the latest casualties due to liquidity constraints and bad loans.

DPC public relations manager Allen Musadziruma said last Friday that payments were in progress for the five closed banks except AfrAsia.

He urged those depositors who have not yet submitted their claims to the DPC for reimbursement to apply.

“Payments for (Allied Bank) commenced on February 23, 2015. To date we’ve paid 15 percent of the value of insured deposits,” said Musadziruma.

“To date we’ve paid 75 percent of the value of insured deposits at Royal bank. We’ve also paid 38 percent of the value of insured deposits at the Trust bank. At Genesis bank we’ve paid 68 percent of the value of the insured deposits.”

He said payments for Interfin Bank depositors commenced on March 3, 2015 and reported so far the corporation has paid 10 percent of the value of insured deposits.

Turning to AfrAsia Bank Musadziruma said DPC was appointed by the High Court as provisional liquidator of the troubled bank on March 18, 2015.

“The corporation will commence payments as soon as the requisite administrative procedures have been finalised. At least 83 percent of AfrAsia depositors will be paid in full as they have balances below the insurable limit of $500,” he said.

“Clients with balances above the insurable limit of $500 will still be paid their deposits through the liquidation process on a pro-rata basis.”

Musadziruma said depositors from Rapid, Sagit and Century banks, which were closed in January 2004, March 2004 and March 2006 respectively, were reimbursed in Zimbabwe dollar, which was the prevailing currency when the institutions collapsed.

“Since the transition to the multi currency regime, payments for the three banks were closed,” he said. Depositors with balances below $500 are paid through convenient payment channels such as mobile phone and bank transfers.

Clients with balances above the insurable limit of $500 will still be paid their deposits through the liquidation process on a pro-rata basis.