THE value of bids tendered on Tuesday for the latest issue of Petrofin Bills was at $21,1 billion, more than double the $10 billion worth of bills on offer. On Thursday last
week, bids worth $12,1 billion were received for the $5 billion worth of bills available.
A spokesman for Syfrets Corporate and Merchant Bank, which is issuing the Petrofin Bills on behalf of the cash-strapped National Oil Company of Zimbabwe Ltd (Noczim), said the average interest rate for the $10 billion worth of 90-day bills allotted was 69,16%.
Syfrets is a subsidiary of the Zimbabwe Financial Holdings Ltd group, which is led by Elisha Mushayakarara.
The highest discount rate tendered was 73,66%, while the lowest was 67,5%.
Tuesday’s Petrofin Bills issue was the 11th.
The bills are being issued to raise money to enable Noczim to procure fuel.
The country has been facing a serious fuel shortage caused by a crippling foreign currency shortage.
Zimbabwe has failed to make timely payments for its fuel from various sources including Libya, where President Robert Mugabe and Jewel Bank boss Gideon Gono have gone regularly to try and procure the product.
The shortage has resulted in government opening up the market to several indigenous entrepreneurs who have, however, decided to sell the product at “market rates”, riling government.
The Petrofin Bills, which are guaranteed by government through the Ministry of Finance and Economic Development and the Reserve Bank of Zimbabwe, enjoy liquid asset status.