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Government assumes RBZ debt
04 Sep 2014 at 08:32hrs | Views
The government has been challenged to consider the enactment of a provision which protects financial institutions from litigations by creditors in respect of debt assumed by the state under the Reserve Bank of Zimbabwe Debt Assumption Bill.
Financial services sector stakeholders say they are concerned that Clause 4 of the bill only protects the RBZ from civil action or litigation in respect of debt assumed by government.
Law Society of Zimbabwe president Lloyd Mhishi said there is need for clarity and further engagement on some of the provisions of the bills and called upon government to extend the protection of litigation to financial institutions.
"We need clarity on some of the clauses which are not clear and specific.
"Also worrying is the fact that there is no protection of banks from litigations. It is only the apex bank which is immune," he said.
Reserve Bank of Zimbabwe governor Dr John Mangudya said the government has begun the payment of the debt through Treasury bills and assured the market that the extension of protection from litigations to financial institutions will be considered.
He said, "It is a valid point that we need to extent the protection from litigations to financial institutions. The recommendation will be considered as we seek to fine tune the bill."
Meanwhile, the Parliamentary Portfolio Committee on Budget and Finance will conduct public hearings on the Reserve Bank of Zimbabwe Debt Assumption Bill from the 15th to the 18th of September in Harare, Gweru, Mutare and Bulawayo with a view to gather stakeholders input into the crafting of the bill.
Financial services sector stakeholders say they are concerned that Clause 4 of the bill only protects the RBZ from civil action or litigation in respect of debt assumed by government.
Law Society of Zimbabwe president Lloyd Mhishi said there is need for clarity and further engagement on some of the provisions of the bills and called upon government to extend the protection of litigation to financial institutions.
"We need clarity on some of the clauses which are not clear and specific.
"Also worrying is the fact that there is no protection of banks from litigations. It is only the apex bank which is immune," he said.
Reserve Bank of Zimbabwe governor Dr John Mangudya said the government has begun the payment of the debt through Treasury bills and assured the market that the extension of protection from litigations to financial institutions will be considered.
He said, "It is a valid point that we need to extent the protection from litigations to financial institutions. The recommendation will be considered as we seek to fine tune the bill."
Meanwhile, the Parliamentary Portfolio Committee on Budget and Finance will conduct public hearings on the Reserve Bank of Zimbabwe Debt Assumption Bill from the 15th to the 18th of September in Harare, Gweru, Mutare and Bulawayo with a view to gather stakeholders input into the crafting of the bill.
Source - zbc
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