Govt to offload $1,3 billion RBZ debt on taxpayers

The government is working on modalities to make taxpayers fund the $1,35 billion debt raked up by the Reserve Bank of Zimbabwe during the hyper inflationary period of the Zim dollar era.

Every formally employed Zimbabwean would foot the bill for the period of madness in which the government made many unpopular decisions, in the name of sovereignty, if the RBZ Debt Assumption bill sails through parliament.

THE Parliamentary Portfolio Committee on Finance and Economic Development will next week conduct public hearings on the bill to drum up support from the public.

Early this year the government took over the RBZ debt in a move that was hailed by economists as the "dawning of a fiscally responsible government."

The committee will hold meetings in Harare, Gweru, Bulawayo and Mutare to hear the public's view on the bill.

In Bulawayo the meetings will be held on Tuesday at the Small City Hall and on Wednesday in Gweru at the Civic Centre

The meetings are open to all Zimbabweans.

The Debt Assumption Bill seeks to provide for the settlement of certain liabilities incurred by the Reserve Bank of Zimbabwe before 31 December 2008.

Economic analysts have warned that the bill could result in increased taxes on already overburdened taxpayers.

On the bright side, they said if successful, it could result in a functioning central bank that could have the power to steer the country's economic future.

The Bill also states that the Act will be repealed once the debt has been settled.