News:Chinamasa Says Cash Crisis Is Easing Due To Increase In Plastic Money Usage. Speaks On Bond Notes
Responding to Glen Norah legislator honourable Webster Maondera of MDC-T on Government policy regarding the payments done to Government departments as most departments want service seekers to pay cash upfront instead of using point-of-sale machines Chinamasa said
While you are talking about a cash crisis, the cash is actually easing because of the corresponding increase in use of plastic money. I am pleased of that crisis because it has given us an opportunity to come up with solutions to that problem. We need, of course, to secure the point-of-sale machines and it is a process. Already, the uptake of point-of-sale machines has been phenomenal.
On the progress involved in printing bond notes and their introduction, Minister Chinamasa said the Reserve Bank of Zimbabwe was finalising the signing of a tripartite agreement with the African Export/Import Bank (Afreximbank) and bond notes printers ahead of the introduction of bond notes in October this year.
He assured the nation that the guarantee facility of bond notes would not exceed the $200 million guaranteed by Afreximbank since the regional bank had a reputation to protect,
The $200 million is a guarantee facility. The bond notes are coming to play a two-fold purpose, as an export bonus scheme, but more importantly to stop leakages of the US dollar. The way things are, if we brought in $2 billion today, tomorrow it will be gone. That is what I think we need to understand. Because of its appreciation and everybody is looking for United States dollars. They will find ways to come and mop up, siphon and fish out our US dollar(s). That is the reason also why we are coming in with the bond notes.
The minister said other measures included implementing the international financial institutions (International Monetary Fund, World Bank and African Development Bank) Arrears Clearance Programme, to unlock more external funding and lowering bank lending rates from as high as 35 percent to current levels of 6-15 percent.
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