Published: 02 July 2014

The Reserve Bank of Zimbabwe says it awaits the passage of the Debt Assumption Bill in parliament in order to start its operations on a clean balance sheet.

Earlier on this week, central bank Governor Dr John Mangudya told the Parliamentary Portfolio Committee on Finance and Economic Development that the passage of the Debt Assumption Bill in parliament will result in government taking over the RBZ debt.

Dr Mangudya said the reserve bank now awaits the parliamentary process and when that is done, the bank will revert back to its core business.

Cabinet approved the takeover of the $1.35 billion RBZ debt by government in what should pave the way for the smooth recapitalisation of the central bank.  

Government will assume the RBZ's domestic debt of $754.3 million to add it to its existing domestic stock of $390 million, to give a total outstanding domestic stock of $1.1 billion.

The central bank's external debt stands at $596.02 million which will become part of government stock of existing external debt of about $7 billion.
- zbc

You might also want to read this

• RBZ suspends 30-day forex liquidation requirement
• RBZ maintains 50% USD retention for tobacco farmers
• AMG boss proposes gold-backed Zimbabwe currency to RBZ
• Money Supply (M3) rises to $17.1 billion in July 2019
• 'Banks should focus on savings deposits'
• RBZ integrity called into question
• RBZ floats $300m additional TBs
• RBZ develpps cold feet, brings back cash-in, cash-out
• RBZ clamps down on illegal cash deals
• Strive Masiyiwa lashes RBZ