Sunday 22 October 2017

Govt issues $2,5 billion TBs, bonds

Govt issues $2,5 billion TBs, bonds
(News Day 08/04/17)
Govt issues $2,5 billion TBs, bonds

The Reserve Bank of Zimbabwe (RBZ) has said by the end of June, the stock of Treasury Bills (TBs) and bonds was $2,5 billion.

Presenting the mid-year monetary policy review on Wednesday, RBZ governor, John Mangudya noted that $826,8 million TBs were issued for expunging the central bank’s legacy debt under the Reserve Bank Debt Assumption Act and $262,7 million were issued to capitalise institutions in which the government has an interest in.

Mangudya revealed that $531,2 million Treasury Bills were issued for government programmes including drought-related expenditures, while the $568,3 million were issued for the Zimbabwe Asset Management Company (Zamco) and $312 million TBs were issued to cover recurrent government expenditure.

“It is evident from this utilisation analysis that TBs have substantially been developmental in nature and productive in as far as the final beneficiaries of the TBs were private sector firms that were owed by government for various services rendered,” he said.

“Such payments assisted the firms to resuscitate their business operations.”

The RBZ said the banking sector’s performance was satisfactory over the half year to June 30, 2017, with total deposits increasing by 6,71%, from $6,55 billion on March 31, 2017, to $6,99 billion.

Total assets were $9,65 billion, while capitalisation and profitability indicators reflect improved performance.

Total bank profits increased from $50,34 million in March this year to $100,59 million at the end of June 2017.

The RBZ boss said Zamco has lived up to the central bank’s expectations to reduce the non-performing loans (NPLs) in the banking sector from 20,45% in 2014 to 7,98% as at June 30, 2017 through the acquisition, management and restructuring of NPLs.

As at June 30, 2017, banking institutions had submitted 361 154 or 97,06% of banking sector loans to the credit registry.

Registered subscribers in the credit registry include banks and microfinance institutions.

Mangudya said the central bank has commenced activities on phase 2 of the credit registry implementation programme, which entails a co-option of microfinance institutions and other credit providers as data providers.

BY FIDELITY MHLANGA

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