Herald Reporter
Government has gazetted the Reserve Bank of Zimbabwe (Debt Assumption) Bill which will result in the State taking over the central bank’s debt incurred during the hyperinflation period.The Bill, which has been published in the Government Gazette, provides settlement of certain liabilities incurred by the RBZ.

According to the Bill, creditors will make claims to the central bank and provide proof for validation before settlement.

“All claims arising from prior debts shall be validated and reconciled by the Debt Management Office for which purpose the Office may demand from the creditor concerned authenticated copies of the relevant loan agreement or contract, any other documentation in support of the creditor’s claim including shipment schedules showing commodities supplied and quality and price per shipment,” reads the Bill.

Creditor statements indicating initial balances, disbursements made, payments effected and the dates of the foregoing, the principal amount of the claim and the interest or a court judgement may also be required as proof.

According to the Bill, the Debt Management Office is a department of the Ministry of Finance and Economic Development.

Its functions include acting as the custodian of all aid and loan agreements to which the liabilities itemised in the schedule shall (if the claims relating to them are validated and reconciled) be regarded as prior debts of the RBZ even if the central bank had no power or capacity to incur the liability or the liability became payable after December 31 2008.

Any claim arising from a prior date that is not validated and reconciled by the debt management office shall not be assumed debt and will remain a liability to the central bank. Government has so far repaid over US$111 million through liabilities taken over from the central bank and still owes creditors over US$154,2 million.