CBZ Holdings says its US$74,84 million legacy debt will be settled gradually through receipts from the Reserve Bank of Zimbabwe (RBZ) and the Ministry of Finance, Economic Development and Investment Promotion, and not on a ZiG1:US$1 basis as earlier indicated.
The financial institution had initially signalled that the legacy obligation would be addressed under a structured 1:1 settlement arrangement with the central bank, aimed at protecting its balance sheet.
However, in a statement, CBZ said the settlement will now be processed through phased receipts from the RBZ and Treasury.
The clarification comes as the group moves to safeguard its capital position while pursuing an ambitious regional and ultimately continental expansion strategy.
“Included in the deposits balance above are amounts denominated in USD amounting to US$74 846 181 (December 2024: US$80 634 302), being legacy liabilities of US$46 177 401 (December 2024: US$46 177 401) and nostro gap accounts of US$28 668 781 (December 2024: US$34 456 901), which are shown at ZiG1 944 556 181 (December 2024: ZiG2 080 244 040),” CBZ said.
“These liabilities are expected to be funded from receipts from the Reserve Bank of Zimbabwe and the Ministry of Finance, Economic Development and Investment Promotion, receivable on a gradual basis in accordance with the legacy debt settlement framework agreed among the parties during the year ended 31 December 2019.”
Under these modalities, the counter parties will progressively provide funding to the group in respect of all registered nostro gap accounts and legacy liabilities.
“To date, US$90 794 290 (December 2024: US$70 259 297) has been made available under this arrangement, demonstrating the willingness and capability of the counter parties to honour the settlement agreement,” CBZ said.
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“The group has, however, identified key risks associated with the legacy liabilities and nostro gap accounts, which are detailed in the Group Annual Report.”
The annual report covers the period ended December 31, 2025.
CBZ said settling these obligations serves as a key de-risking mechanism, transforming a volatile multi-million-dollar liability into a predictable, fixed-cost administrative process.
In that regard, the group’s balance sheet remained resilient, with total assets rising to ZiG41,15 billion in the 2025 financial period, from ZiG34,42 billion in the prior year.
