RBZ issues savings bonds

HARARE - The Reserve Bank of Zimbabwe (RBZ) has started issuing savings bonds to individual and institutional investors with a promise of seven percent annual return.

The central bank, which is issuing the debt securities to help raise money to fund government business, said applications can be lodged through commercial, building societies and the Post Office Savings Bank (POSB).

The minimum purchase will be for $100. The maturity periods for the bonds vary from one year to five years with an interest rate of seven percent per annum.

“The RBZ hereby invites investors — individuals, companies, pension and provident funds, insurance companies, life mutuals, financial institutions and other interested institutions in Zimbabwe, to subscribe for the RBZ seven percent savings bond. Applications must be for a minimum of $100 for both corporate bodies and individuals. Copies of the application forms are available from RBZ, commercial banks, building societies and POSB. The purpose of issue is to provide investors with a platform to save and invest in high-yielding instruments,” said RBZ in a statement issued yesterday.

While bonds are offered to help broaden government’s funding base, the RBZ governor, John Mangudya, last month said the central bank wanted to create a platform for investors to “save and invest in high-yielding instruments”.

Presenting his monetary policy statement review last August, Mangudya said: “To encourage individuals, families, households, small and medium enterprises, schools, universities, public and private institutions, corporates, churches and investors in general, to start saving and to nurture a culture of saving and building national wealth the Bank has developed a savings bond which offers simplicity and guaranteed returns with minimum investment from as little as $100 with no commission, agency or service fees.

“The savings bonds will help to accelerate the empowerment of the banking public by providing an investment instrument with high-yielding returns as well as offering safe and secure investment. The savings bonds will be made available, through banks, selected agencies and electronically on a platform to be established. The bonds will be accepted as collateral on all borrowings and convertible to cash on a simple open and transparent fixed conversion rate on any trading day.”

[GoogleAd



 

Comments (1)

Government Bonds provide some form of RISK FREE Investment but however in this case one has to choose his government with some degree of care.

Mwanawapasi - 30 September 2017

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.