Cabinet to review RBZ Debt Assumption Bill

Published: 03 July 2014

The Reserve Bank of Zimbabwe (Debt Assumption) Bill has been submitted to Parliament for review as the move to re-capitalise the central bank and restore its core functions gathers momentum.

The Bill, which was announced last month, will ensure that Government settles liabilities incurred by the bank before December 2008.

Parliamentary Portfolio Committee on Finance and Economic Development chairperson David Chapfika yesterday said the Bill had been received by Parliament and would be sent to the committee for review soon.

"Your Bill is before us, we have received it and I am sure it will be referred to us by Parliament soon. l am glad to note that you have reduced the debt to be assumed by Government by $238 million," he said.

In April, the committee argued that the figures presented by the RBZ had been inflated and asked the ministry to verify figures so that they deal with facts instead of assumptions in coming up with the amount owed to different corporate and individuals.

"Initially when we got the draft it was $1,350 billion and now it is $1,122 billion. We are happy that the issue of figures that were overstated has been addressed," he said.

He, however, said there were still some anomalies in the figures which the committee would look into thoroughly before passing. Giving oral evidence to the same committee, RBZ governor John Mangudya said the passing of the Bill would kick-start the revival process.

"The re-capitalisation of the reserve bank depends on the passing on of the bank's Debt Assumption Bill by Parliament and senate. What it will basically do is to clear the bank's balance sheet so that we start on a clean slate," he said.

He said although the Bill was subject to validation and verification by Cabinet, Government was capable of paying the full amount.

Parliamentarians had raised concern that Government might not be able to settle the debt once the Bill was approved.

"In terms of Government's ability to pay, we are confident that they will be able to pay. All the Treasury Bills that the Government has so far issued have all been fully paid," he said.

He noted that Government had paid in full TBs worth $150 million which had matured last week.
- BH24

Tags: RBZ,