Bond notes: Tsvangirai warns Zanu PF wants to pay debt

HARARE - Opposition MDC leader Morgan Tsvangirai has accused President Robert Mugabe’s administration of seeking to pay off its local debt using bond notes.

This comes as $245 million issued in treasury bills in the first quarter to finance the budget and pay domestic debt was facing hurdles. A total of $679 million is needed to pay government domestic loans this year alone.

The country faces a huge debt burden. Its total external debt is estimated at $10,7 billion, or 113,5 percent of GDP, at the end of 2011. More than half of it is in arrears.

“Zimbabweans will resist the bond notes and if they are not acceptable locally, what about to foreigners? It doesn’t work, there is no economy that can be run on bond notes.”

“With what Zimbabweans experienced during the era of bearer cheques, they will naturally resist them... They know what they want, a new direction for the country and an economy that is viable and they know that what Mugabe’s government is availing as a solution is short term and will not make them live their aspirations. Zanu PF, busy fighting for power, is not focusing on the real issues...”

This comes as the Confederation of Zimbabwe Industries (CZI) recently said Zimbabweans must embrace the proposed bond notes, saying they will boost internal trade and ease the cash crunch threatening Zimbabwe’s already lethargic economy.

Rejecting claims by the central bank governor that the new bank notes were merely meant to encourage exports; Tsvangirai said that Mugabe’s government would “abuse” civil servants by paying them in the new form of cash.

“All patriotic Zimbabweans must reject this,” Tsvangirai said. “These bond notes are an attempt to rig the economy.”

Former Finance minister Tendai Biti has warned that the bond notes will have cataleptic consequences to the remaining constructs of Zimbabwe’s pseudo economy.

“It is a decision that will see many of the remaining companies reach breaking point and simply shut down. Few are prepared to relive the nightmare of the meltdown period of 2007 and 2008.

“The move will also engineer a fresh wave of externalisation, under banking, tax avoidance and evasion,” the opposition PDP leader said.

Comments (27)

Its so disheartening to read these utterances by the mdc leader who seem not to improve his methods,but instead always pulls inthe opposite direction.Of all the years that he has been talking,what exactly has he done in terms of economy recovery.We read these stataments in the diaspora and we really wonder,when this division is going to stop,our country needs solutions and if the bond notes are to be tried out,then give it a try.We all know of 2007-8,we also know of the great depression of 1939.But this is 2016 and on wards lets move as a people.Those who let morgan decide for them can go ahead,but look at the food on your table and decide what you want mwana wevhu.

farai chafesuka - 6 June 2016

Who are you Farai to talk shit to our President, the Truly-Voted His excellence, waunoti mwanawevhu ndiyani ? moda kuisa ani again muvhu, get away with your satanic party kaZanu kehuroyi, taneta nemi satanists, GO TO HERALD GO TO HELL

JOHN FARAH - 6 June 2016

Farai Chafesuka, what planet are you from, Bond notes are not a pair of shoes that you try on to see if they fit. Bond Notes will impoverish everyone in this country, today they worth 1:1 to the dollar, tomorrow they will be worth 2:1 and a year later they will be 1000:1, and before you know it your accounts will be converted into ZimBonds at the official rate (1:1) and what ever you have saved will be gone. The bond notes will force law abiding citizens into the black market to survive, and what ever income and economy the country has will be driven underground.

BTW - 6 June 2016

wena farai u behave as if u donnt kno zanu pf

rabson mafu - 6 June 2016

@Farai. Gone are the days when people were used to be used like condoms. Chakatanga ndochakachenjedza. If the local people, I mean the masses had confidence with Mugabe or Zanu pf Gvt people or the masses were going to accomodate this bond paper money. You cant force things on people and now to go back to the same people they will give them terms and thats what this govt does not want. Zanu pf is cursed and you should understand that. They always think that they are correct in their wrong doing. Its not about Tsvangirai, its about us, I would rather have a Zambian Kwacha than having a bond note

Johannes - 6 June 2016

Farai what you wrote about is utter trash, Chafizuka will be your new middle name nenyaya yema bond notes awurikuchemera! You want us to give bond notes a try! gambling with our lives, whilst Zanoid gluttons secretly enjoy the 15bln USD, and hare-brain people like you gleefully cheering them on. You attacked the MDC leader accusing him of not improving, what have those currently in power done to take our economy forward? let us not allow these gamblers to play with our lives. we should explore other options like extension of the rand zone and other better solutions not these abhorrent bond notes which the politicians can easily abuse with their run to failure tactics

Peter ncube - 6 June 2016

The financial institutions are bankrupt. Through nothing but pathetically poor leadership and managers who have made suicidal decisions we are now faced with the worst financial crisis in our history. Talk about hardships, we have seen nothing yet compared to what is looming. Even with an immediate change in Government and good and responsible leaders placed at the helm, we are going to need more than a miracle to turn this country around. We have only ourselves to blame for this mess.

Mbewa - 6 June 2016

I agree with Tsvangirai on the bond notes. ZANU PF has used depositors' funds and real depositors can not access their cash. Now the government wants to introduce bond notes to wipe off the remaining real US$ deposits. I want to warn international banks, that if they fail to protect depositors' funds this time like they did in 2007/8, we are taking them head on in their home countries for propping up a rogue ZANU PF government. In fact they are engaging in money laundering in cahoots with the ZANU PF thugs. Big banks will face litigation this time in their home countries for purporting to being able to run a bank in Zimbabwe, when they are being used like condoms by ZANU PF thugs. We are prepared this time.

Zvichapera - 6 June 2016

@farai chafesuka,thank yu 4 being brave to speak out your mind,as yu can see,the mdc people who claim to be democrats can not tolerate other peoples opinions,they are blinkered and take everything their idiotic leader says for 'gospel truth' its actually sad that for a country with a high literacy levels like ours,an opposition party could not find a suitably educated leader,his grasp of issues is equal to his education,though he has outshone all politicians in zim in between the sheets

truth - 6 June 2016

MDC brought sanity to the economy during the government of national unity. ZANU PF is now doing what they have done over the last 36 years....destroy and ruin our lives!

Doug Mushawasha - 6 June 2016

just shut up @john farah

truth - 6 June 2016

Hahahaha Farai Chafesuka and Truth you are swimming up stream. And like zanu you are not even aware you are getting nowhere.

Jackson - 6 June 2016

titambire@farai chafesuka

saManyika chaiye - 6 June 2016

kkkkkkkkk @Chafizuka just wanted yu guys to know that he is in the diaspora! the rest he said is ballast & chaff that is meaningless. he is no different to the tribalist @jojo who clung the undercarriage of a SA bound farmer only to start shooting aimlessly afta crossing limpopo. waritwo wanofunga kuti Musina idiaspora. ndopaunoona kuti rhobhati auraya wanhu wari wapenyu.

SaManyika Chaiye - 6 June 2016

@farai chafesuka, you certainly have a strong head. For that reason, the likes of you should go ahead and take up the bond paper notes for your use. It is a free world. The likes of myself will not go anywhere near those papers. We have been there before. I lost everything in 2009. I lost my life time savings, my pension, my business and properties due to Zanu PF economy mismanagement. We have just started rebuilding, now then are once again pulling down everything. Zanu PF appropriated all the farm land, nothing is coming out except sora farm. They took all the diamond farms, they starched away all the cash in Hong Kong and Malaysia. You Farai Chafesuka, certainly, you are of those who have befitted from the Zanu PF chaos creation. Good luck to you!

Mbareboy - 6 June 2016

the moneyless are running scared of bondnotes as if they have any money,whether yu like it or not bond notes are with us,they are here to stem externalisation of hard currency,stimulate exports and boost local production,myself i just cant wait to go to the toyota zimbabwe showroom with my briefcase full of bond notes and buy the latest toyota fortuner for myself whilst the likes of @samanyika endure the harsh winter nights at robert mugabe square protesting for the return of the british

truth - 6 June 2016

@Truth, you are like a parrot. Parroting the lie zanu pf has peddled over and over to create an excuse to stay in power - that lie of the return of the british. Unknown to you is that this deliberate lie is among the top most lies peddled by zanu which have got the country where we are now. Remember too the lies Joshua Nkomo, Ndabaningi Sithole, Morgan Tsvangirai, Joice Mujuru wanted to kill mugabe. Your handlers of late have toned that lie of the return of the british. But you, being a slow learning parrot of course have problems in unlearning the lies

Jackson - 6 June 2016

kkk musazvinetse vaverengi nana truth ava ndosaka vasingaverengi herald vanoziva zvavo kuti ronyepa fulltime. musapedzere nguva yenyu navo vasiyei vanyore tunhuna twavo asi chokwadi hachichinji, mbavha imbavha chete ende haimboshaiyi vanoipururudzira. ava vapururudzi chete asi magumo achangouya chete . ndiani benzi risingaoni kuti nyika rangova dongo rinotungamirirwa narwavhi. chii chisva chichaburwa ipapa. vana truth varegeiwo veduwe. dzakaguma padzakatangira, chakabata hama hachisekwi. achateerera sekuru vaakudawo kubatsirwa ndiani. nyangwe ndimiwo munhu anokanganwa kuti hapana musiyano bond nebearer wotonzwa achishamarara kuti achazadza bhegi andotenga mota, handiti chinozadzisa bhegi kushaya simba? zvino benzi rotoda kuzadza bhegi aaaaa betserai munhu

kila - 6 June 2016

@samanyika,am proud to be called a tribalist because i resist domination,am proud to be called a tribalist because i believe in locals benefitting from their resources,eg the manicaland people benefitting from their diamonds,am pproud to be called a tribalist if i call for access to employment for all citizens,am proud to be called a tribalist if i call for access to resources for all zimbabweans and am proud to be called a tribalist if i resist corruption which is now a part of life in some parts of zimbabwe,so call me a tribalist for that and i will gladly accept the same way yu have accepted that by being a manyika yu are a second grade shona

jojo - 7 June 2016

CHAFesuka ,it shows your level of education . Keep it up with your idiot thoughts .You are still living in the dark ages , wake up wake up

wilfred - 7 June 2016

@jojo; yu are suffering from a revealing conundrum that makes yu support & object zanu at the same time and this quandary yu are in is so chronic that no amount of rehab is going to deliver yu! i want to quote yu here; yu a tribalist if u believe in locals benefitting from their resources eg bla bla..., right? yu also a tribalist if yu resist corruption which is now bla bla ....right? why then do yu support zanu when yu know that rhobhati lost $15b to chinese conmen? do yu know what $15b can do to a kantry that is in a situation like ours, even if its in the hands of a local robber? why do yu support zanu when yu know that there is nepotism in zanu? fo yo infor, i dont grade myself into 1st or 2nd grade but i belong to the human grade, neither do i nid to be resettled like what a certain veteran porcher once suggested bcoz i am settled already! i think yu beta obtain SA citizenship & stay there as zim & its issues seem to confuse yu. zim is no place for mentally handcapped chaps like yu. which tribe do yu come from @jojo. tribal bitterness has robbed you the quality of being rational and if yu were to be president for 1 day you cld commit a genocide and hang yoself afterwards. i strongly recommend that yu take a sabbatical from this forum (am not chasing yu away) and consult a skilled psychiatrist just to moderate your condition. good luck; tribal piglet born of a mad swine! dhemet!

SaManyika Chaiye - 7 June 2016

@truth; yu recently got a hilux & yu are already gunning for a fortuner, come bondnotes?! yu must be an avid fan of toyota...right? and there must be a nice gallery of these maverick 4X4s? when a yu taking me to the farm to see your packed herd? sleep impoverished day dreamer with unfathomable hallucinations!

SaManyika Chaiye - 7 June 2016

WE ZIMBOS ARE FOOLS, AS LONG AS MUGABE IS IN POWER NO ONE WILL LEND ZIMBABWE MONEY. HE THINKS HE IS ABOVE THE LAW. HE CAN NOT BE TRUSTED. WHAT HAS HE DONE FOR US SINCE INDEPENDENCE WE HAVE GONE BACK WARD NOT FORWARD. NO ONE IS GOING TO INVEST IN THIS COUNTRY AS LONG AS HE IS IN POWER. WAKE UP THINK ABOUT IT.

ALEXIO - 7 June 2016

@ farai, with all respect to your opinion, i really dont think your mind works very well. How can you say you want to give a try to plastic money. WIth respect do you have any children, are you not tired seeing a headless child, asking for airtime, you still buy him panties at 24 years of age. i am an example my self, we need to forsee change, the economy is struggling, and yet no such monetary polices nor fiscal polices implemented by government have been very helpful to our country. Everything tends to go down everyday, we are tired of such policies which only favour the bigwigs. Let us do things, for our country, for every citizen of zimbabwe. tatambura isu, manzwa mukoma farai, musanyora zvinhu musina kufunga. # We want a working zimbabwe from left to right.

Anti Bond Coin - 7 June 2016

FARAI I RESPECT YOUR INTELLIGENCE IF YOU HAVE ANY

taneta - 7 June 2016

LOL funny to see Mugabe's puppets hard at work. Wake up people of Zimbabwe, open your eyes and see what your government has done. Mugabe has had 26 years and all he has done is destroy our country.

Dave - 7 June 2016

no to bond notes,we want a long term solution,we are tied guys

rob - 9 June 2016

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