PHILLIMON MHLANGA
Finance Minister, Mthuli Ncube, on Thursday revealed he will soon introduce a Debt Assumption Bill in Parliament for blocked funds amounting to US$3.3bn incurred by local companies.
Presenting his 2022 National Budget in Parliament, Ncube said the passage of the Bill would result in government taking over the blocked funds debt.
The legacy debt to foreign creditors has continued to hinder industry recovery. The viability of several companies has been under serious threat as the unsettled foreign obligations have seen some suppliers of critical raw materials stopping supplies to Zimbabwe.
“Total public debt as of end of September 2021 is US$13.7bn. Of that amount there is US$3.3bn blocked funds.
“I will soon bring the Bill to Parliament for debt assumption of the US$3.3bn blocked funds that we have assumed as the central bank,” Ncube said.
He said the domestic stock amounted to ZWL$46.6 billion, with Treasury bills accounting for 80% of the total domestic debt (ZWL$37.3 billion), Treasury bonds 12% (ZWL$5.4 billion), while domestic arrears were at 8% (ZWL$3.9 billion).
