Breaking News

Banks fear hyperinflation return in plea for Zimbabwe reforms

by Bloomberg
08 November 2018 | 4057 Views
Zimbabwean banks urged the government to introduce wide-ranging reforms amid signs the country is facing an economic crisis reminiscent of a hyper-inflationary spiral a decade ago.

Finance Minister Mthuli Ncube is preparing to announce the 2019 budget later this month. He's juggling a ballooning budget deficit, foreign-exchange shortages that are fuelling inflation, and an inability to raise foreign loans because of $5.6 billion of debt arrears.

The fiscal shortfall, which was more than triple the amount budgeted in the nine months through September, is the country's greatest source of economic instability, the Bankers Association of Zimbabwe said in a submission to the Finance Ministry seen by Bloomberg and verified by the ministry.

The deficit is being financed by domestic borrowing and an overdraft at the central bank — essentially printing money, it said.

"It is important that comprehensive fiscal consolidation and austerity measures be put in place to reduce the fiscal deficit and control money supply growth," the BAZ, which represents the country's lenders, said in the statement.




Secretary for Finance George Guvamatanga declined to comment on the proposals as they are "market-sensitive issues."

The BAZ's key proposals include:

    Reducing government support for state-owned companies and privatising some of them
    Consolidating domestic debt with a longer repayment period
    Restricting the sale of Treasury bills only to finance productive expenditure
    Eliminating or reducing subsidies

"The above reforms will be associated with significant costs of adjustment and in particular the pain of adjustment, with potential for social unrest, unless delicately and comprehensively addressed," the BAZ said.

While it's still far from estimated 500 billion percent it reached in 2009, Zimbabwe's inflation rate has more than doubled to 5.4 percent since Robert Mugabe was toppled as president a year ago. Ncube said on Thursday price growth accelerated even further last month.

Banks Reforms Hyperinflation

Source: Bloomberg

Comments

Latest News

'What unites us is stronger than what divides us' argue Mnangagwa - we...

by Patrick Guramatunhu | 23 January 2019 | 1 Views

ZEC testifies in Biti case - The Zimbabwe Electoral Commission (ZEC) h...

by Staff reporter | 23 January 2019 | 175 Views

Mnangagwa mourns Tuku - President Emmerson Mnangagwa has sent a messag...

by Staff reporter | 23 January 2019 | 145 Views

ZANU PF officials disrupt lessons at secondary school - ZANU PF offici...

by Simbarashe Sithole | 23 January 2019 | 1198 Views

Tribute to Oliver 'Tuku' Mutukudzi

by Dr Masimba Mavaza | 23 January 2019 | 1328 Views

130 000 flee army killings to South Africa

by Mandla Ndlovu | 23 January 2019 | 4586 Views

'I failed to change ZANU PF from within' says Jonathan Moyo

by Mandla Ndlovu | 23 January 2019 | 4941 Views

Kombi drivers refuse to leave bus terminus - COMMUTER omnibus drivers ...

by Staff reporter | 23 January 2019 | 4390 Views

New twist in Tendai Biti case - MDC Alliance Harare East MP Tendai Bit...

by Staff reporter | 23 January 2019 | 3327 Views

BREAKING: Prophet Makandiwa cleared over 'fake prophecies'

by Staff reporter | 23 January 2019 | 2861 Views

Social Media reacts to music legend Oliver Mtukudzi's death

by Staff reporter | 23 January 2019 | 4416 Views

The fantasy that Mnangagwa would fix Zimbabwe is now fully exposed - A...

by David B Moore I The Conversation | 23 January 2019 | 2104 Views

MDC MPs languish in Hwahwa prison

by Mandla Ndlovu | 23 January 2019 | 2043 Views

Zimbabwe begins to settle IATA debt - The government has started servi...

by Staff reporter | 23 January 2019 | 746 Views

Mawarire bail hearing delayed

by Agencies | 23 January 2019 | 476 Views

'Mnangagwa beware of Chiwenga' Malema warns

by Mandla Ndlovu | 23 January 2019 | 11951 Views

Zimbabwe shutdown, a noble cause but many things went wrong!

by Nomazulu Thata | 23 January 2019 | 1501 Views

Post-Election violence commission submission - I am an independent mem...

by Terence Simbi | 23 January 2019 | 927 Views

ZANU plot against MDC officials exposed

by Bekithemba Mpofu | 23 January 2019 | 3636 Views

UK piles pressure on Mnangagwa

by ZimLive | 23 January 2019 | 7270 Views

MDCs welcome Mnangagwa's call for dialogue

by newzimbabwe | 23 January 2019 | 2591 Views

Mthuli Ncube vows bold economic turnaround

by ZimLive | 23 January 2019 | 1446 Views

Mnangagwa's move to go after rogue soldiers welcomed by analysts

by Staff reporter | 23 January 2019 | 980 Views

UK Lord urges Zimbabwe recolonisation

by newzimbabwe | 23 January 2019 | 2187 Views

High Court ruling on Internet hailed - Information, communication and ...

by Staff reporter | 23 January 2019 | 1 Views

WATCH: George Charamba defends army killings

by Mandla Ndlovu | 23 January 2019 | 501 Views

Entertainment

Oliver Mutukudzi had blood cancer?

by Mandla Ndlovu | 23 January 2019 | 122 Views

'Why do you worship guns?' Mnangagwa asked

by Mandla Ndlovu | 23 January 2019 | 1952 Views

BREAKING: Oliver Mtukudzi dies

by Mandla Ndlovu | 23 January 2019 | 10543 Views

Ailing Mtukudzi misses Coca-Cola awards

by Staff reporter | 23 January 2019 | 3135 Views

LISTEN: Tocky Vibes disses soldiers

by Mandla Ndlovu | 22 January 2019 | 3226 Views

Africa Human Rights Film Festival

by Agencies | 18 January 2019 | 150 Views

Mahlalela ropes in Omkhula in new film

by Staff reporter | 13 January 2019 | 375 Views

Sandra Ndebele reflects on music journey

by Staff reporter | 11 January 2019 | 309 Views
iBlog

What To Look For In Video Converter Software

looking for the best video converter software? you have to compare different video converters before making a purchase.the ability to watch video on different types of devices is a wonderful thing. not so wonderful are the compatibility issues that ... Read More
Sergey 19 June 2015 ago

Mobile Spy Software Maker Mspy Hacked

mspy, the makers of a software-as-a-service product that claims to help more than two million people spy on the mobile devices of their kids and partners, to have been massively hacked. a public relations pitch from mspy to krebsonsecurity in march ... Read More
SecNews 17 May 2015 ago