RBZ issues savings bond

HARARE - The central bank is issuing a seven percent per annum savings bond in a move aimed at providing investors with a platform to save and invest in high yielding instruments.

According to a statement by the Reserve Bank of Zimbabwe (RBZ), the bond is open to individuals, companies, pension and provident funds, life mutuals, financial institutions and other interested institutions in the country.

With rolling maturities of one, two, three and five years, the bond also has tax free interest.

Applications must be for a minimum $100 payable through transfers or cash.

Foreigners with funds awaiting remittance could also subscribe for the savings bond, the central bank said.

Special features of the bond include rolling maturities of one, two, three and five years, simple interest rate of seven percent per annum calculated on a 365-day basis, tax free interest, acceptable as collateral and liquid asset status.

Zimbabweans are slowly rebuilding a savings culture following the collapse of the Zimbabwe dollar whose use was stopped in April 2009, resulting in many bank clients losing out on their deposits and savings.