Gono working with Biti on Zim dollar compensations

BUSINESSES and individuals whose savings were frozen following the dollarisation of the Zimbabwean economy in 2009 will be compensated during the first quarter of 2012, Reserve Bank of Zimbabwe (RBZ) Governor Dr Gideon Gono said.

Speaking at a Confederation of Zimbabwe Industries (CZI) end of year business dinner in Gweru at the weekend, Dr Gono said the RBZ in conjunction with the Ministry of Finance was working on modalities that would see Zimbabweans whose savings were rendered worthless following the introduction of the multi-currency regime get compensated within a period not beyond the first quarter of 2012.

Dr Gono said a lot was said following the RBZ's decision to freeze all the Zimbabwean dollar accounts when the country adopted the multi-currency system.

The RBZ boss said the central bank has been busy disposing some of its assets in order to raise the money to compensate the accounts, which were frozen.

"When we took the stance to freeze accounts, there was a lot of criticism but I have always said that the extraordinary times, which we were facing needed extra ordinary measures. People should at least appreciate what the RBZ did to keep the country ticking when the going got even tougher."

"Now that the economy is beginning to pick, the RBZ is disposing some of its assets to make sure that businesses, pensioners and genuine bankers who lost their monies when their savings accounts were frozen are compensated."

Dr Gono said the RBZ was working with the Ministry of Finance to set benchmarks on how the compensation amounts will be worked out.

"We know there are questions on how this is going to be done. Some questions, which are in the people's minds, have to do with conversion mechanisms to be employed but let me say that all this is being worked out. We will also consider putting some interest to those people and businesses that lost their money," he said.

Most Zimbabweans had their savings eroded just before the dollarisation in 2009. Several workers also lost their terminal benefits following the introduction of multi-currency system and there have been calls for the RBZ to compensate those who lost their money.

In October this year, Finance Minister Tendai Biti told parliament that the ministry was going to come up with benchmarks to compensate those people whose savings were frozen when the country introduced the multi-currency system.

Minister Biti said the ministry would try and avoid compensating unscrupulous people who used the famous "money burning" system to fatten their savings accounts.

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