Govt floats $60m Treasury Bills

Govt floats $60m Treasury Bills
Published: 20 August 2019 (147 Views)
GOVERNMENT has floated Treasury Bills (TBs) valued at ZWL$60 million, the second auction in a month geared towards financing various programmes.

In a communique yesterday, the Reserve Bank of Zimbabwe invited financial institutions, asset managers and insurance and pension funds to subscribe to TBs with one-year maturity tenure.

"The Reserve Bank of Zimbabwe (RBZ) hereby invites financial institutions including commercial banks, building societies, POSB, Infrastructure Development Bank of Zimbabwe, asset managers, insurance and pension funds and other corporates to subscribe to Treasury Bills amounting to sixty million dollars (ZWL$60 000 000)," 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.

The offer opened yesterday and closes on Thursday.

In its previous public auction of the sovereign paper early this month, the apex bank sought to raise $30 million within 91 days.

The auction was oversubscribed more than four times.

The economy is envisaged to contract this year as a result of poor performance in agriculture, erratic power supply, coupled with inflationary pressures, foreign currency shortages and limited external financial support.

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.

Previous auctions were held in secrecy, and as such, government has now instituted an open market borrowing to enhance transparency on its domestic debt.

The huge quantity of TBs issued during the period 2017 to June 2018 had posed a 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 unveiled last October, Treasury resolved that all issuances of TBs and other public debt instruments would 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.

Through the TSP, government promised only to be issuing medium to long-term securities in view of the limited fiscal space, categorised into those for liquidity support, infrastructure development, and those for other purposes.

- NewsDay

Tags: RBZ, TreasuryBills, TSP,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

PHOTOS: Job Sikhala becomes an instant internet joke

by Social media | 03 October 2019 | 276 Views

America says it is worried about Zimbabwe

by Mandla Ndlovu | 03 October 2019 | 309 Views

Madinda Ndlovu to be discharged tomorrow

by Staff reporter | 03 October 2019 | 213 Views

What are behavioral disorders and how can they be managed?

by Temba Munsaka | 03 October 2019 | 211 Views

Government speaks on Robert Mugabe's body parts

by Mandla Ndlovu | 03 October 2019 | 310 Views

Zacc recovers $100m property from looters

by Staff reporter | 03 October 2019 | 210 Views

WATCH: Mnangagwa apologises for destroying Zimbabwe satire

by Mandla Ndlovu | 03 October 2019 | 208 Views

Mphoko's application for release of passport dismissed

by Staff reporter | 03 October 2019 | 167 Views

Zanu-PF restructuring exercise begins

by Staff reporter | 03 October 2019 | 164 Views

Petrotrade declares $1.5 million dividend

by Staff reporter | 03 October 2019 | 134 Views

MSU, Zupco seal bus deal

by Staff reporter | 03 October 2019 | 254 Views

Mnangagwa to open ZMF conference

by Staff reporter | 03 October 2019 | 173 Views

High Court sets EcoCash hearing date

by Staff reporter | 03 October 2019 | 177 Views

Mphoko barred from leaving Zimbabwe

by ZimLive | 03 October 2019 | 174 Views

CIO agents monitor Jonathan Moyo in Kenya

by Mandla Ndlovu | 03 October 2019 | 393 Views

Acie Lumumba targets criminals around Mnangagwa

by Mandla Ndlovu | 03 October 2019 | 342 Views

$100 limit for cash-out transactions

by Staff reporter | 03 October 2019 | 253 Views

ANC starts anti-sanctions campaign

by Staff reporter | 03 October 2019 | 178 Views

ZESN calls for political parties regulation

by Staff reporter | 03 October 2019 | 152 Views

We've no forced labour evidence on Zimbabwe diamonds, says US Embassy

by Staff reporter | 03 October 2019 | 165 Views

Ex-ZPC board chairman freed on bail

by Staff reporter | 03 October 2019 | 196 Views

Cyber Bill seeks to safeguard citizens

by Staff reporter | 03 October 2019 | 136 Views

Cassava launches Vaya tractor services

by Staff reporter | 03 October 2019 | 177 Views

MDC Alliance boycott slammed

by Staff reporter | 03 October 2019 | 94 Views

10-man Bulawayo Chiefs stun Harare City

by Staff reporter | 03 October 2019 | 143 Views

Zimbabwe has a reputational problem, says US

by newzimbabwe | 03 October 2019 | 156 Views

MDC Alliance walk of shame

by Nduduzo Tshuma | 03 October 2019 | 214 Views

MDC councillors want suspension of Cowdray Park projects

by Staff reporter | 03 October 2019 | 145 Views

RBZ floats $300m additional TBs

by Staff reporter | 03 October 2019 | 134 Views

Teenagers rob soldier

by Staff reporter | 03 October 2019 | 155 Views

Duo rape corpse, get death sentence

by Staff reporter | 03 October 2019 | 172 Views

Mnangagwa to fly out for the zenith times

by Staff reporter | 03 October 2019 | 137 Views

Chamisa's MPs approach court to reverse 5 months allowance garnish

by newzimbabwe | 03 October 2019 | 76 Views

Zimra official forges Customs papers

by Staff reporter | 03 October 2019 | 61 Views

Zifa courts two nations for Warriors' friendlies

by Staff reporter | 03 October 2019 | 50 Views