RBZ posts US$19 million surplus on govt bailout

Business
The Reserve Bank of Zimbabwe (RBZ) posted a US$19 million surplus in 2013 as a result of impairment reversals after government forked out US$61 million

The Reserve Bank of Zimbabwe (RBZ) posted a US$19 million surplus in 2013 as a result of impairment reversals after government forked out US$61 million to repay some of the bank’s loans and tax obligations.

BY OUR STAFF

In 2012, RBZ posted a surplus of US$74 339 489 after government paid US$112 141 024 to settle the central bank’s obligations.

In 2013, RBZ posted a deficit before impairment of financial assets of US$41 781 413 from US$37 801 535 in 2012, showing that the bank was in the red and needed government intervention.

“The bank recognised a reversal of impairment of US$61 million during the period under review due to government loan repayments [previously impaired] and payments of the bank’s tax liability. This resulted in a surplus of US$19 million for the year ended December 31 2013,” RBZ said.

In 2013, government repaid RBZ’s Afreximbank loan of US$15 million, China Eximbank loan (US$12 million), DaeDong Industrial Company Limited loan (US$3 million) and the bank’s tax liability of US$21 million.

Government also issued Treasury Bills for US$23 million under the PTA fuel facility.

“Accordingly, these payments and the issuance of Treasury Bills by government were credited to amounts due from government. As a result, the bank recognised an impairment reversal of US$61 million due to these credits,” RBZ said.

Interest and commission income was US$11 472 089 in 2013 from US$9 849 311 in the previous year. The income was derived from investment in South African Treasury Bills, overnight interest on nostro accounts and interest from local banks.

Interest earning assets as at December 31 2013 were US$151 million, up from US$50 million in 2012.

Interest expenses were US$53 027 130 up from US$43 554 044 in 2012. Interest bearing liabilities as at December 31 2013 were US$848 million, down from US$858 million in 2012.

RBZ is a non-profit making organisation that is heavily dependent on government for funding. In 2013, government disbursed US$24 million to fund RBZ’s operations.

It generates minimal revenue from Real Time Gross Settlement System charges and sale of customs declaration forms.