TIME Bank has made an ambitious proposal of arranging syndicate loans of US$35 billion to help government compensate 10 groups of people owed significant amounts of money, it has been revealed.
The bank reopened in 2022, 18 years after it had been unjustly shut down by the central bank.
The forms of compensation listed by Time Bank are for land repossessed before and after independence as well as for the loss of value that occurred to different economic segments following the 2008 hyperinflationary period.
In a statement, the bank said it had to arrange syndicate loans to the government for the purposes of compensating people previously disadvantaged.
“As part of its strategy, Time Bank has proposed to arrange syndicate loans of US$35 billion to the government of Zimbabwe (government) for the purposes of financing the payment of compensations to 10 groups of people, including previous farm owners and other groups of people who also deserve such compensations in an inclusive manner stated below . . .” Time Bank said.
“. . . compensations to previous farm owners hereinafter referred to as ‘PFOs’ or their representatives, in terms of section 295(3) of the Constitution of Zimbabwe and Global Compensation Deed for improvements on their land which was acquired by the State without compensation after 1980.”
The bank added: “An additional compensation of about US$3,2 billion will be paid for the land by the donors without obligation to the government and Time Bank will assist to raise such donations (US$3,5 million).”
Time Bank also proposed compensation to the first group of indigenous Zimbabwe, hereinafter referred to as the first group of people, or their representatives, in terms of section 295(1) of the Constitution of Zimbabwe for their land.
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This is for land acquired by the State without compensation before 1980.
The amount will be paid to institutions that benefit many people, namely social welfare of US$1,5 billion and the Financial Inclusion Fund of US$3,5 billion.
Other forms of compensation include: Compensation to deposits of banks of 2009 (US$1,1 billion); compensation to pensioners (US$1 billion); compensation to insurance policyholders (US$400 million); compensation to any resettled farmers if they are removed after making improvements to the land (US$400 million); compensation payable to the second group of indigenous Zimbabweans, bought their farms (which) were later on acquired by government without compensation after 1980 (US$400 million); compensation to foreign investors under BIPPA [Bilateral Investment Promotion and Protection Agreement] or BIT [Bilateral Investment Treaties] (US$400 million) and loan repayment to foreign lenders (both existing and new foreign loans) (US$20,4 billion).
Time Bank noted that it is working on restoring its full banking services in phases as it was now conducting limited banking services.
“In terms of its strategy, Time Bank is pursuing a phased business model, where the bank is being reopened in phases. Such a business model enhances the financial performance of Time Bank during the period of re-opening. As part of its business model, Time Bank is currently conducting limited banking services and is not taking deposits from the public,” the bank said.
“Central to Time Bank’s business model is the development of a bank that starts small and which can be scaled up easily. In particular the ability to scale up will be based on Time Bank’s organisational capacity including new product development and new market development as well as its research and development.”
Under the current phase of re-opening, Time Bank is offering limited banking services consisting of mortgage loans for new properties, export loans and trading of Treasury securities using the bank’s own funds.
The bank is also offering financial agency, management, advisory and consultancy services.
