Govt overdraft at RBZ reaches $1,2bn

GOVERNMENT has so far accrued a $1,2 billion overdraft with the Reserve Bank of Zimbabwe with the new monetary policy statement prescribing to mitigate the unintended consequences of excess government overdraft on the economy.

BY FIDELITY MHLANGA

Announcing the 2018 Monetary Policy Statement yesterday, RBZ governor John Mangudya said the accumulation of an overdraft was due to the fact that the economy was relying on internal funding, as it was starved off foreign funding unlike other countries.

“On overdraft, we are on $1,2 billion. If you go by the Act it was supposed to be $800 million,” he said.

https://youtu.be/_Tz1k2Uyh-M

“We have done well under the difficult circumstances . . . because we are all, but on ourselves.”

Mangudya said in line with the lending power of the bank to government as provided for in section 11(a) of the Reserve Bank Act (chapter 22:15), RBZ was putting in place measures to ensure that the lending limit to government does not exceed the regulated 20% of the previous years’ revenue of the State.

“This measure is necessary to comply with good corporate governance and to mitigate the unintended consequences of excess government overdraft on the economy,” he said.

Government has been failing to live within its means incurring budget deficits with expenditure overrunning the revenue generated.

Mangudya said the 2018 Finance Bill which awaits Senate approval would make multi pricing and refusal of plastic money illegal.

At least one billion transactions valued at $97,5 billion has been recorded by end 2017, with plastic money accounting for 96% of transactions, he said.


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3 Comments

  1. then mumwe munhu oti mangudya akuziva basa zvakadayiii izvozvi.kungotaura ndizvo zvaiita gono

  2. the majority of that overdraft is spend on luxuries (non-productive spend) being imported from many countries. Then we have a cash crisis and pple ask. If you buy 3000 cars, you just pay and there is nothing that will create money from a car being used a boarder gezi or a chief in the rural areas. Infact you need more money to keep the car on the road, even if its not productive. This is just one example. There is a lot more of non-productive spend by our clueless Coup govt

  3. this guy lies ..if 97.5 billion dollars of transaction rolled throughthe system why is zimra accounting for just 3billion..kkkkkkk because transactions are taxed,and surely 97.5 billion ..that makes us 100billion dollar economy plus for we can move that kind of money in the absence of supporting infrastructure …any way my comment was meant on 1.2 billion thats a whole deep lie ..the government borrowing lies at over 5billion considering what zimra collects 90% goes to salaries ,ko zvimwe izvi makati zviriku fundwa nei ..vanhu vanonyepa ava

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