RBZ seeks to raise $30m

RBZ seeks to raise $30m
Published: 01 August 2019 (239 Views)
THE Reserve Bank of Zimbabwe (RBZ) is seeking to raise $30 million through a public auction of Treasury Bills (TBs) to finance government programmes.

This is the first public Treasury Bill sale in seven years after a test run last month to gauge market appetite for government paper. The apex bank has invited banks and building societies to subscribe to the sovereign paper with a 91-day tenure with successful bids to be alloted today.

"The Reserve Bank of Zimbabwe (RBZ) hereby invites commercial banks and building societies registered in Zimbabwe, including the POSB and Infrastructure Development Bank of Zimbabwe (IDBZ to subscribe to Treasury Bills amounting to thirty million dollars (ZWL$30 000 000)," the Central bank said in a statement.

Applications must be for a minimum amount of $1 million, with the number of bids per investor restricted to two.
Between 2013 and 2018, government held private auctions for TBs for banks and insurance firms and used a central bank overdraft facility to raise money, driving domestic debt to more than $9 billion.

The high level of TBs issued during this period, and the associated debts servicing costs posed risk on macro-economic stability. The TBs have, in most cases, been discounted in the market, thus contributing towards the current liquidity crisis.

According to Treasury, the stock of outstanding TBs as at June 2018 is US$6.7 billion, with a maturity value of around US$8,3 billion .

The huge quantity of TBs issued during the period 2017 to June 2018 had posed significant burden to the fiscus in terms of both interest and principal payments.

In some instances, this has resulted in a situation where the TBs were being discounted at ridiculous rates in the secondary market, hence undermining market confidence in government securities.

Through the Transitional Stabilisation Programme(TSP) unveiled last October, Treasury resolved that all issuances of TBs and other public debt instruments will be guided by tighter monitoring and management to ensure consistency with the budget framework as approved by Parliament, and that mobilised resources are channelled towards infrastructure development.

- newsday

Tags: rbz, treasury, bills,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Will the system change if Chiwenga collapsed and died today?

by Hopewell Chin'ono | 18 August 2019 | 55 Views

Zimbabwe Constitution ignored

by Zimbabwe Vigil Diary | 18 August 2019 | 38 Views

Zimbabwe reaches point of no return, says Chamisa

by Staff reporter | 18 August 2019 | 65 Views

SADC declares Zim solidarity day

by Staff reporter | 18 August 2019 | 66 Views

Another blow for Chamisa's MDC

by Staff reporter | 18 August 2019 | 71 Views

Caps United beat Bosso

by Staff reporter | 18 August 2019 | 63 Views

Accommodation scandal rocks UZ

by Staff reporter | 18 August 2019 | 57 Views

UZ investigating student accommodation scandal

by Staff reporter | 18 August 2019 | 51 Views

South African buffalo is nak├ęd, media goes on mute

by Zanele Lwana | 18 August 2019 | 50 Views

Mnangagwa back from SADC Summit

by Staff reporter | 18 August 2019 | 61 Views

Phelekezela Mphoko speaks on arrest saga

by Mandla Ndlovu | 18 August 2019 | 102 Views

Chamisa's MDC to appeal against demo ban

by Staff reporter | 18 August 2019 | 75 Views

High Court dismisses application to stop MDC march

by Staff reporter | 18 August 2019 | 154 Views

AU, UN to hear SADC position on sanctions, says Mnangagwa

by Staff reporter | 18 August 2019 | 120 Views

Bad news for Mnangagwa faction

by Mary-Kate Kahari | 18 August 2019 | 194 Views

BREAKING: MDC Bulawayo demonstration stopped

by Mandla Ndlovu | 18 August 2019 | 122 Views

Obert Mpofu behind Chief Ndiweni jail sentence, claims Coltart

by Staff Reporter | 18 August 2019 | 106 Views

Police set to block MDC Alliance Bulawayo demos

by Staff Reporter | 18 August 2019 | 84 Views

Jonathan Moyo calls for UN invasion of Zimbabwe

by Staff Reporter | 18 August 2019 | 111 Views

Phelekzela Mphoko speaks on arrest saga

by Mandla Ndlovu | 18 August 2019 | 90 Views

Chamisa says despot Mugabe is better than Mnangagwa

by Staff reporter | 18 August 2019 | 81 Views

Lumumba urges Zimbabwe political leaders to save 'this great country'

by Staff reporter | 18 August 2019 | 83 Views

Teach early learners using local languages

by Staff reporter | 18 August 2019 | 72 Views

Bulawayo town clerk assault case postponed

by Staff reporter | 18 August 2019 | 56 Views

Mnangagwa's 'third force claim' on abductions rubbished

by Staff reporter | 18 August 2019 | 74 Views

Bulawayo residents stay away from CBD

by Staff reporter | 18 August 2019 | 106 Views

Mnangagwa govt scores own goal

by Staff reporter | 18 August 2019 | 93 Views

'Mnangagwa must stop divide and rule governance'

by Staff reporter | 18 August 2019 | 81 Views

Cops' savage granny 'operated' on

by Staff reporter | 18 August 2019 | 74 Views

Zimbabwe's economic crisis has reached breaking point

by David Pilling | 18 August 2019 | 73 Views

Buyanga challenges ex girlfriend's bid to regain child custody

by Staff reporter | 18 August 2019 | 55 Views

Zimbabwe govt readies for introduction of electric cars

by Staff Reporter | 18 August 2019 | 103 Views

USA role in MDC demonstrations exposed

by Staff Reporter | 18 August 2019 | 129 Views

Teacher fakes children's death for insurance

by Staff Reporter | 18 August 2019 | 94 Views