By ETimes
HARARE – Time Bank of Zimbabwe expects its appeal for the Government to assume blocked funds to be confirmed by the end of the year, which is essential for the financial institution’s survival.
The bank reopened in 2022 after 18 years of not operating.
In 2021, the Zimbabwean government introduced the Finance Act, which provided financial relief to companies and banks through the ‘Blocked Funds’ initiative.
Under this scheme, the government assumed US$3.3 billion in foreign currency liabilities incurred before February 22, 2019, on the condition that recipients settled the equivalent Zimbabwean Dollar amount at a 1:1 exchange rate with the US Dollar.
“The Resolution of the Blocked Funds is one of the key Strategic Issues for Time Bank and its resolution will enable Time Bank to achieve the capitalisation of US$30 million by 31 December 2024, complete the computerisation of the Bank and launch its Pilot Scheme of US$1 million for the payment of total compensations of US$35 billion made up of compensations of US$3.5 billion to Previous Farm Owners and compensations of US$ 31,5 billion to the other groups of people who also deserve compensations as stated below.
“Hence, in the coming year Time Bank will pursue the resolution of the Blocked Funds as such issue is of critical importance,” Time Bank of Zimbabwe said in its financials for the year ended 31 December 2024.
The bank’s profit before tax was up 1334.3% in 2022 to ZWL$3.27 billion from ZWL$228.67 million in 2021.
Accordingly, the bank’s balance sheet rose 497.08% to ZWL$5.22 billion as at 31 December 2022 from ZWL$784.99 million as at 31 December 2021.