Publications
Partners
Harare - The Zimbabwean government has reportedly asked Old Mutual and the National Social Security Authority to purchase Treasury bills worth a combined US$30m.
Treasury officials told The Herald Business that Old Mutual bought $20m 365-day bills, while the NSSA bought $10m 90-day bills.
The 365-day bills have a half-year coupon and a yield of 10%, while the 90-day bills have a 7% yield.
According to The Herald, the Treasury bills are part of the $103m floated by the Reserve Bank of Zimbabwe last week.
The Treasury bills were expected to go towards clearing FCA balances owed by the central bank.
However, sources privy to developments say the two entities were asked to buy the bills to help government pay salaries for civil servants.
Last month the Zimbabwean government failed to pay its workers on time, postponing the pay date by three days.
This was viewed by analysts as a sign of a tightening financial crisis.
Recently the government promised its 235 000 state employees a wage increase, but the money is yet to materialise several months down the line.
Finance Minister Patrick Chinamasa has since promised to effect the increases starting this April.
Treasury officials told The Herald Business that Old Mutual bought $20m 365-day bills, while the NSSA bought $10m 90-day bills.
The 365-day bills have a half-year coupon and a yield of 10%, while the 90-day bills have a 7% yield.
According to The Herald, the Treasury bills are part of the $103m floated by the Reserve Bank of Zimbabwe last week.
The Treasury bills were expected to go towards clearing FCA balances owed by the central bank.
However, sources privy to developments say the two entities were asked to buy the bills to help government pay salaries for civil servants.
Last month the Zimbabwean government failed to pay its workers on time, postponing the pay date by three days.
This was viewed by analysts as a sign of a tightening financial crisis.
Recently the government promised its 235 000 state employees a wage increase, but the money is yet to materialise several months down the line.
Finance Minister Patrick Chinamasa has since promised to effect the increases starting this April.
