admininvestments in local companies as it seeks funding to clear a US$1,1 billion debt overhang.
RBZ Governor Dr Gideon Gono told a Parliamentary Portfolio Committee on Budget and Finance this week that the bank expected US$27,7 million from the disposal of assets and US$110 million from investments.
The disposal process, according to the chairman of the assets disposal committee Retired Justice Smith, would be completed by the end of the year.
However, Dr Gono said that the RBZ was still weighing the options regarding disposal of Bank Chambers and Hardwick House due to their strategic positions. The two buildings adjoin the central bank.
“We have to rethink their disposal not just for reasons of price, but because of the very nature of their strategic location.
“As a board we have got to think about their disposal in the interest of the State,” he said.
But chairman of the portfolio committee Mr Paddy Zhanda advised the central bank to sell the buildings to realise more funds to reduce its debt.
Although a significant portion of the debt was accrued from national obligations carried out by the RBZ on instructions from Government, Finance Minister Tendai Biti wanted the debt to be settled by the central bank itself.
He has often accused the central bank governor of undertaking unsanctioned quasi-fiscal operations that resulted in the huge debt overhang.
Dr Gono presented evidence to the committee that showed that most if not all quasi-fiscal operations were carried out at the behest of Government in line with Section 6d and Section 8 of the repealed Old Reserve Bank Act.
The provisions mandated the RBZ with advancing economic objectives of the country and compelling it to carry such activities as instructed by Government.
The quasi-fiscal operations included settling debts accrued during procurement of fuel, medicine, paying off IMF arrears and procuring agricultural implements.
Discussions are, however, underway to determine what portion of the debt Government will assume, which would lessen the burden on the central bank.
There is also is general belief a significant portion of the debt that remains was accrued during Dr Gono’s reign, but in fact 60 percent of the arrears were inherited from previous administrations.
Nonetheless, Dr Gono pledged the bank would try its best to settle the liabilities using money recovered from beneficiaries of farm mechanisation.
Online Reporter