MDC-T calls on government not to introduce bond notes because they spell disaster

Zimbabwe’s main opposition Movement for Democratic Change-Tsvangirai has called on the government not to introduce bond notes next month if it has the interests of the people at heart because they spell disaster.

“These worthless bond notes will inevitably lead to increased shortages of essential goods in the country simply because most, if not all, importers, will not have access to the hard currency that is needed in the import and export of goods and services,” the party said in a statement today.

“We strongly suspect that the bankrupt and faction – ridden ZANU-PF regime harbours a very sinister motive pertaining to the introduction of bond notes,” it added without elaborating.

Zimbabwe announced that it would introduce bond notes more than four months ago to ease the current cash shortage but said they would be backed by a $200 million facility with AfriExim Bank.

The MDC-T has, however, insisted from the beginning that this is a way of bringing back the Zimbabwe dollar through the back door.

“The majority of the people of Zimbabwe, on whose behalf the MDC is speaking, have already stated, resoundingly, that they don’t want these bond notes to be introduced into the financial system,” the party said.

“If it is indeed true that the bond notes are backed by a US$200 million facility provided by the AfriExim bank, the ZANU-PF regime could simply release this amount of money into the market rather than rushing to print worthless bond notes that they say will initially be equivalent in value to US$75 million.

“The ZANU-PF regime can never be trusted with financial prudence and probity. This regime has got an extremely bad record and history of spending more money than the value of goods and services that Zimbabwe can produce.”

The government said the bond notes would help curb illicit flows as Zimbabwe had become a fishing pond for United States dollars.

“The MDC is saying a resounding NO, to the introduction of bond notes. The people of Zimbabwe shouldn’t continue to be abused and mistreated by the renegade and irresponsible ZANU-PF regime,” the MDC-T said.

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