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THE Deposit Protection Corporation (DPC) has started paying demonetisation proceeds to qualifying Zimbabwe dollar account holders for banks under liquidation.
Through demonetisation, which entails stripping a currency unit of its status as legal tender, the government aims to create confidence in the financial services sector by assuring the nation that the return of the Zimbabwe dollar is not imminent.
In a statement, DPC said the payment was with effect from December 1, 2015 to April 30, 2016.
“DPC shall pay the equivalent of US$ amount for each account balance as at December 31 2008 converted by the United Nations exchange rate of $1 to Z$35 quadrillion,” it said.
Accordingly, DPC shall pay any person who was a holder of a Zimbabwe dollar denominated bank account for AfrAsia Bank Zimbabwe Limited and Allied Bank Limited as at December 31, 2008.
In terms of the demonitisation guidelines, it said only holders of active deposit or savings accounts as at December 31, 2008 are eligible for payment while holders of investment accounts are not eligible for payment.
The DPC said any person who was a holder of a Zimbabwean dollar bank account for the liquidated banks would be paid in the following manner, US$5 for every account that was held with a balance of zero up to one hundred and seventy five quadrillion Z$, and for any Zimbabwe dollar balance above one hundred and seventy-five quadrillion Zimbabwe dollars at the rate of US$1 to 35 quadrillion Z$.
“Zimbabwe dollar account holders for AfrAsia and Allied Banks are therefore advised to approach our offices for payment with a valid proof of identification (national identification card/valid driver’s licence/valid passport),” it said.
Claim forms are available on electronic mail upon request and can also be downloaded from the DPC website.
Operating banks have started paying out account holders whose money was locked in banks when the country adopted a multi-currency system.
Before the adoption of a multicurrency regime, a majority of Zimbabwe dollar account holders had savings whose balances ran into quadrillions and quintillions of dollars.
However, when the government adopted other nations’ currencies, the local currency became worthless and savings went up in smoke.
Online Reporter