mushayavanhu bankers ass 03.08.10.jpgThe Bankers Association of Zimbabwe (BAZ) has called on the government to consider taking over the US$70 million Statutory Reserves Debt owed to banks by the Reserve Bank of Zimbabwe (RBZ) so as to improve the capital position of the financial institutions.

This proposal comes at a time the nation is looking forward to the forthcoming 2012 National Budget, which is expected to address several macro and micro economic challenges facing the local industry.

BAZ President, Mr John Mushayavanhu noted that as part of the banking industry’s recommendations submitted to the fiscal authorities for consideration, the association is encouraging the government to take over the debt owed to several banks by RBZ, which is currently estimated to be US$70 million.

According to the proposal, the fiscal authorities may issue Treasury Bills to the banks being owed by RBZ, which can then be used to secure overnight accommodation from fellow banks.

Apart from the US$70 million debt strategy, some of the recommendations submitted to the Ministry of Finance by the association include the need to capacitate the central bank to ensure that it plays its role as lender of last resort, conclusion of the demonetisations project aimed at paying Zimbabwe dollar depositors as well as measures to enhance activity on the interbank market.