DPC compensates loss for 2019 currency devaluation

By Tichaina Kurewa

THE Deposit Protection Corporation (DPC) has paid over US$200 000 to depositors as compensation in respect of loss of value due to the change of currency in 2019.

The DPC closed the first compensation scheme in June under Deposit Taking Microfinance Institutions and has now moved to depositors under POSB.

From POSB, the compensation scheme will be taken to another bank until all beneficiaries are paid.

DPC Acting Chief Executive Officer Mr Gift Chirozva, who spoke to ZBC in Victoria Falls this Thursday gave an insight into the ground that has been covered so far in respect to compensation for loss of value to depositors.

“With respect to loss of value due to currency changes of 2019, DPC has had paid out USD83 356 to 917 depositors in Deposit Taking Microfinance Institutions, by the time the scheme was closed on 10 July 2022. The on-going compensation for Loss of Value to depositors of POSB commenced on 22 August 2022 and to date US$ 120 936 has been paid out to 544 POSB depositors,” he explained.

Members of the public have welcomed the move saying it will improve their confidence in the banking sector.

“This is a good move as it encourages us to bank our money. It assures us that we won’t lose completely, there is always a recourse. The news about the compensation should therefore reach all corners of the country especially in rural areas where a number POSB depositors reside,” said a beneficiary.

DPC is a state entity set up to compensate depositors in full or in part, for losses incurred in the event of insolvency of a contributory institution.

Among other benefits, the DPC guarantees compensation up to the cover limit for eligible deposits in the event of a bank failure.