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The Reserve Bank of Zimbabwe (RBZ)  yesterday said it intends to raise $500 million to support  Government’s fight against the Covid-19 pandemic through issuance of  treasury bills (TBs).

The emergency of  Covid-19, a global pandemic that has killed hundreds  of thousands and infected millions others, has stretched Governments’  financial capacities across the world, as huge resources are required  not only for awareness campaigns but also upgrading of health  institutions,  and acquisition of testing kits and personal protective equipment.

Zimbabwe to date has recorded 605 infections and seven deaths, with  Government investing heavily to revamp health systems, acquire health  equipment and materials and looking after returning citizens who are in  quarantine and isolation centres.

While the Government appealed for support and has received  millions in cash and kind, the central bank’s decision to raise more  funds points to a deficit in the Government’s financial capacity.  The RBZ said the TBs, which have a tenure of 270 and 364 days, are  open for subscription by financial institutions but restricted to  commercial banks and building societies as well as the Post Office  Savings Bank and Infrastructure Development Bank of Zimbabwe.

The instruments, which will be open for subscription on July 3 and  close on the same day, have an open tender yield basis interest and  have other special features such as prescribed and liquid asset  status.

They are also exempt from taxation and are accepted as collateral  for overnight accommodation by the central bank.

Allotment, which will be done at the close of the offer, will be at  the weighted average. —  New Ziana.