RBZ targets to raise ZW$500 mln for Covid-19 fight

RBZ targets to raise ZW$500 mln for Covid-19 fight

Harare, (New Ziana) – The Reserve Bank of Zimbabwe (RBZ)said on Thursday it intends to raise ZW$500 million to support government’s fight against the Covid-19 pandemic through issuance of treasury bills (TBs).

The emergency of Covid-19, a global pandemic that has killed hundreds of thousands and infected millions others, has stretched governments’
financial capacities across the world, as huge resources are required
not only for awareness campaigns but also upgrading of health institutions, and acquisition of testing kits and personal protective equipment.

Zimbabwe to date has recorded 605 infections and seven deaths, with
government investing heavily to revamp health systems, acquire health
equipment and materials and looking after returning citizens who are in
quarantine and isolation centres.

While the Zimbabwean government appealed for support and has received
millions in cash and kind, the central bank’s decision to raise more
funds points to a deficit in the government’s financial capacity.

The RBZ said the TBs, which have a tenure of 270 and 364 days, are
open for subscription by financial institutions but restricted to
commercial banks and building societies as well as the Post Office
Savings Bank and Infrastructure Development Bank of Zimbabwe.

The instruments, which will be open for subscription on July 3 and
close on the same day, have an open tender yield basis interest and
have other special features such as prescribed and liquid asset
status.

They are also exempt from taxation and are accepted as collateral
for overnight accommodation by the central bank.

Allotment, which will be done at the close of the offer, will be at
the weighted the average.
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