Addressing journalists in Harare, Biti said the move was consistent with the prescribed asset requirements for pension funds and insurance companies. The bond will be at a negotiated coupon rate of 7 percent.
Biti, who was presenting the State of the Economy address for the first two months of the year, said US$20 million had already been raised.
The necessary provisions to meet maturities related to the issuance of the TBs will be made as part of the 2014.
Biti emphasised that the country does not have the funding for the elections and the referendum and as such a meeting held last week with President Robert Mugabe, Justice minister Pat Chinamasa and himself had resolved that government should go the UNDP route in order to get the funding.
“Obviously it’s already too late for the referendum but the UNDP would come in for the assessment in relation to the elections.”
Zimbabwe needs US$85 million for the referendum and US$132 million for the elections. This is against the $25 million provided for in the budget.
Biti said Treasury had already disbursed US$31.5 million to the Zimbabwe Electoral Commission which had gone towards; indelible ink and ballot paper (US$2 million), voter education costs ($2.5 million) , referendum materials(US$3.5 million), vehicle hire US$3 million, training US$5 million and US$20 million, $5 million of which is supporting ZRP.
“Additional resources towards supporting the referendum are being disbursed within the course of today and tomorrow.”
Biti said the US$31.5 million essentially covers the core cost needed to ensure that the referendum takes place successfully. Other issues like allowances will be dealt with later. “Still there is need for us to rationalize the allowances; we have to eat what we kill.”
The government had also directed the diamond companies, Mbada, Anjin, Marange and Diamond Mining Corporation to pay up the outstanding 2012 revenues to the fiscus.
Biti said government had also resolved to turn to the ordinary tax payer by reviewing upwards the excise duty on diesel and petrol for March-December 2013 by 5c each. As such diesel will be 0.25/l and petrol at 0.30c/litre. This translates to an increase of 20% and 25% in excise duties on diesel and petrol.
Post published in: News