Staff Reporter

Government has issued settlement modalities to obliterate the Blocked Funds in terms of the Finance Act No. 7 of 2021.

In a statement issued this weekend by the Permanent Secretary for Finance and Economic Development, George Guvamatanga, Government is moving to facilitate the assumption of Blocked Funds from Reserve Bank of Zimbabwe (RBZ) following a series of currency reforms from the multi-currency system, to the introduction of mono-currency and a flexible exchange rate regime.

Guvamatanga mentioned that payments of less than US$1 million would be paid in cash over the period of five years.

“All claimants of less than US$1 million will be paid in cash, over the period of 5 years beginning June 2022 basing on the RBZ approved and registered claimants list as at 30 June 2022 amounting to US$51 million. To date, Treasury has made payments amounting to US$19 million, with a balance of US$32 million which will be paid from April 2023 to September 2026,”said Guvamatanga.

Guvamatanga further mentioned issuance of Zero-Coupon Treasury Bonds as another approved settlement modality.

“All claimants of less than US$1 million were issued with Zero-Coupon Treasury Bonds (TBs) ranging from 3 to 20 years based on the outstanding amount. To date, total TBs amounting to US$1.485 billion have been issued. These Treasury Bonds are tradable, have liquid asset and prescribed asset status,” said Guvamatanga.

Meanwhile, Guvamatanga highlighted that Treasury noted with concern the appeals being made for payment through ostensible representatives of the claimants and he advised that it would not deal with third parties on claims of Blocked Funds and would not entertain anyone claiming to be representatives of the claimants of Blocked Funds. He further advised claimants to directly approach Treasury if there are any issues requiring attention.