‘$300m new bond facility only after first batch exhausted’

Source: ‘$300m new bond facility only after first batch exhausted’ – NewsDay Zimbabwe August 10, 2017

THE Reserve Bank of Zimbabwe (RBZ) says the $300 million standby export finance facility will be made available once the bank has exhausted the initial $200 million to ensure that exporters continue to benefit from the export incentive scheme.

BY TARISAI MANDIZHA

In an interview with NewsDay, RBZ governor, John Mangudya said the $300 million facility was in place to ensure the smooth continuation of exports of goods and services as soon as the $200 million provision is exhausted.

“The $300 million standby export finance facility will kick-in once the $200 million facility is exhausted to ensure that exporters continue to benefit from the export incentive scheme.

“We want to have seamless and flawless support for the exporters of goods and services. We believe in the export generation strategy for the well-being of the Zimbabwean economy,” he said.

Mangudya said the bank has also negotiated for $600 million from the African Export-Import Bank (Afreximbank) for the stabilisation of nostro accounts.

“People need to believe in themselves and this country needs to believe in itself. Let’s believe in ourselves, exercise self-discipline and the country will be okay,” he said.

Last year, RBZ unveiled a $200 million facility guaranteed by the Afreximbank in which exporters would get a 5% incentive in bond notes. To date, $175 million in bond notes have been issued.

In a mid-term monetary policy statement review, Mangudya said the bank would release $300 million worth of bond notes into the market under a new facility secured through the Afreximbank.

This will bring the total bond notes in circulation to $500 million.

Mangudya said there were $25 million worth of bond coins, $175 million in bond notes and approximately $800 million in various currencies under the multicurrency regime in circulation, to give a total of around $1 billion.