CLOUDINE MATOLA
Treasury has struck a deal to pay off long standing foreign debts on behalf of troubled local companies, Business Times can report.
The debts incurred following the reintroduction of the Zimbabwe dollar in 2019 were about US$3,3bn and were assumed by the Reserve Bank of Zimbabwe (RBZ).
This week, the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube confirmed the deal saying Treasury has completed the validation process for blocked funds and has since issued Treasury Bills (TBs) to international creditors.
“Treasury has already completed the registration of all blocked funds and the validation of the same. It is against this background that treasury wishes to advice the public that the process of validation of foreign exchange applications submitted under the blocked funds framework announced in the monetary policy statement of February 22 2019 has since been completed and the claimants have already been dealt with through issuance of treasury bonds and cash payments arrangements,” Professor Ncube said.
He added that the ministry will not consider new appeals since the process has been completed.
“The treasury advises all companies, individuals, organisations and entities with blocked funds appeals that the process was completed in 2020 and that no new appeals will be considered,” Professor Mthuli said.
He further said treasury has noted the recent influx of companies or individuals that are appealing for the approval of blocked funds through the RBZ.
Blocked funds constitute debts and funds that companies or individuals incurred for the supply of goods and services by foreign entities and for which the Reserve Bank of Zimbabwe was unable to pay due to shortage of foreign currency.
