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Zimbabwe's Central Bank Chief Proposes Compensation for Dollarisation Victims

  • Gibbs Dube

Finance Minister Tendai Biti projected in 2010 that the payout may amount to US$6 million but the bill ballooned to more than US$18 million with allegations that some so-called vultures were inflating their bank balances.

The Reserve Bank of Zimbabwe Governor Gideon Gono says there is swelling discontent among those who lost millions of dollars in frozen accounts when the country introduced a multiple currency regime.

Gono told a Parliamentary Committee on Mines and Energy that Finance Minister Tendai Biti has to mobilize resources to compensate dozens of people and companies whose accounts were frozen during the dollarization process.

In 2010, Biti projected that the payout may amount to US$6 million but the bill ballooned to more than US$18 million with allegations some were inflating their previous bank balances.

Economists said Zimbabwe is not yet in a position to refund individuals and companies that lost their money due to serious financial problems.

Economist Eric Bloch said compensating the victims of the economic meltdown is a good idea but modalities of implementing the program are complex.

β€œIt may also be pointless for people with bank balances at that time of less than Z$100 trillion to pursue the matter as they will not get anything as the local currency was valueless,” said Bloch.

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