Home » Business » Nine Banks Snap Up $103 Million TBs

NINE financial institutions have fully subscribed for the $103 million Treasury Bills floated by the Reserve Bank of Zimbabwe last month with CBZ Bank snapping up more than half of the amount on offer.

Of the $103 million, $93 million went towards balances the banks held with the central bank while the difference went towards tobacco retentions.

Figures obtained by The Herald Business from the Ministry of Finance show that CBZ snapped up $61 million towards the FCA balances and a further $1,6 million towards tobacco retentions.

Stanbic Bank spent $28 million towards FCA balances and $719 401 towards tobacco retention, while Ecobank snapped up $2,34 million towards FCA balances and $327 499 for tobacco balances.

Agribank purchased $5,6 million towards tobacco balances and $297 161 for FCA balances. Allied Bank purchased $811 514 towards FCA balances and $906 878 towards tobacco retentions. BancABC snapped up $862 103 towards FCA balances.

FBC Bank bought $324 774 for FCA balances and $810 025 for tobacco retentions balances while Metbank picked $11 348 for FCA balances and $72 617 for tobacco balances.

This gives a total of $92,9 million towards FCA balances and $10,1 million towards tobacco balances. Giving oral evidence before a Parliamentary Portfolio Committee on Public Accounts yesterday, Permanent Secretary in the Ministry of Finance and Economic Development Mr Willard Manungo said the TBs were targeted at dealing with two components of FCA balances relating to what the banks had with the central bank and towards tobacco retentions.

“This process followed the validation that Zimbabwe Debt Management office is doing in terms of trying to validate the $1,35 billion RBZ debt,” said Mr Manungo.

“Tobacco retentions alone are more than $30 million and as we validate some of the balances we will be issuing additional paper to try and extinguish the debt,” he added.

The validation exercise involves verifying each debt to determine the exact indebtedness of the reserve bank.

Government last year assumed the RBZ’s $1,35 billion debt made up of domestic debt of $754,3 million, domestic stock of $390 million and $596,02 million external debt .

With regards to the $150-$200 million funds to capitalise the central bank, Mr Manungo said the Ministry of Finance was working on modalities to raise resources.

This is the first step in a roadmap towards clearing the RBZ debt. The TBs have prescribed asset status, liquid asset status and are tax exempt and attract an annual interest of 2 percent.

Source : The Herald