Broke Govt to issue Treasury Bills to raise 2016 bonuses

Speaking during a 2017 budget analysis tabled in the National Assembly, Finance Minister Patrick Chinamasa revealed that Government is issuing Treasury Bills (TBs) in a move to raise money to pay civil servants’ 2016 bonuses.

Said Chinamasa:

Government’s decision to pay the unbudgeted 2016 bonuses after pressure from employee unions is likely to worsen the situation as TBs worth $180 million are expected to be floated in the market to finance these bonus payments.

He said the move will worsen government’s debt situation. Chinamasa said the country was estimated to have about $2,1 billion worth of TBs in the market as at February 28, 2017, issued to bridge the government’s funding gap.

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