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Zimbabwe Coalition on Debt and Development is spearheading the call for Government to set up a Public Debt Commission to conduct an official public debt audit before any debt relief mechanism can be considered for the Reserve Bank of Zimbabwe.
In June this year, Government gazetted the RBZ Debt Assumption Bill that is meant to address the Central Bank’s $1, 12 billion debt that it incurred prior to December 31, 2008.
The essence of the Bill is the Government’s willingness to assume RBZ’s debt so that it will revert to its core business of being lender of last resort.
ZIMCODD said in as much as the Bill will have implications on the economy and the general operations of the Central Bank, as a social and economic justice movement it is concerned about the fate of the tax payer (who bears the brunt of repaying) once the Bill becomes law.
“There is need to know the beneficiaries and the extent to which many people have benefited. In the Schedule attached to the Bill, a list of debts to be assumed by the Government has been given hence this information is not enough as it is void on who actually benefited in terms of sectors,” said ZIMCODD in a statement.
ZIMCODD said some purposes for the debts are not mentioned for example a $4 million loan from Metallon Gold and a total of $2,9 million owing to Kingdom Capital Tier.
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