DPC yet to pay $3m to depositors
THE Deposit Protection Corporation (DPC) is still holding up to $3,3 million meant to compensate depositors of collapsed banks.
This comes after revelations that scores of concerned depositors are struggling to submit repayment claims for their money.
The DPC’s primary mandate is to compensate depositors in full or in part, for losses incurred in the event of insolvency of a contributory institution.
It was established in July 2003 to provide deposit protection to depositors in institutions licensed to operate banking or finance business in Zimbabwe.
In an e-mailed response to Business Chronicle yesterday, DPC indicated that 11 000 customers of Genesis, Royal, Trust, Interfin, AfrAsia and Allied Banks have so far been paid $3,1 million, reflecting a 49,2 percent payment rate from the total insured
THE mining industry, which has sustained the local economy for almost a decade now, has shown resilience despite depressed mineral prices that characterised the better part of this year. The industry remains one of the major driving forces behind the anticipated economic turnaround in 2017. According to Finance and Economic Development Minister Patrick Chinamasa’s 2017 National Budget statement, the economy should register a moderate GDP growth of 1,7 percent on the back of improved international commodity prices.
While prices of most commodities have been down in the past 10 months, gold, platinum, chrome and nickel registered a modest output growth in that period. It is on this background that the budget projected a growth of 0.9 percent in 2017.
While this growth is significantly lower than the high growth rates that have been registered in the mining industry before (9 percent in 2012 and 10,1 percent deposits of $6,4 million.
DPC chief executive officer Mr John Chikura said they were struggling to locate some depositors whose contact details had since changed.
“Payments to AfrAsia, Allied Bank, Interfin Bank, Genesis Investment Bank, Royal Bank and Trust Bank depositors are in progress,” said Mr Chikura.
“If a claim is not made within the prescribed period, the unclaimed protected deposit will remain part of the Deposit Protection Fund, and all the rights thereto shall revert to the corporation.”
The new cover limit of $1 000 per depositor in each member bank, said Mr Chikura, is expected to protect 93 percent of depositors by number of accounts in full, which is in line with the corporation’s public-policy objective of ensuring at least 90 percent of depositors are covered in full.
He said in terms of the law, there was a time limit within which a depositor would be required to claim the amount of her or his protected deposit from DPC.