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People’s Own Savings Bank (POSB) has compensated depositors for losses incurred in February 2019 after a raid was made on their clients Accounts.The bank started paying only successful claimants, under the second phase of the programme, who had balances below US$1 000 in their bank accounts by or before February 2019 when Government abolished the 1 to 1 exchange rate policy.
The introduction of the local Zimbabwe dollar currency, has seen the movement in the exchange rate resulting in a loss for depositors.
The Zimbabwe Government made a decision to compensate the small and vulnerable depositors who had balances of US$1 000 and below, for the exchange rate movement loss and the Government set aside US$75 million for the exercise.
The local bank, POSB recently received US$25 million from the Treasury to compensate for the losses and beneficiaries are getting 60 percent of the value of their deposits at the time of the currency switch.
POSB disbursements to account holders are in the second phase after payments to depositors of deposit-taking microfinance institutions.
The Deposit Protection Corporation, which supervises the compensation by local banks, said in the last phase, 914 claimants were paid a total of nearly US$83 000 across banks.
The upcoming phase will see depositors of commercial banks and building societies benefiting.
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