Harare, May 04, 2010 - Finance Minister Tendai Biti on Tuesday announced a new board of governors of the Reserve Bank of Zimbabwe (RBZ), which he said must bring sanity to the institution which is saddled by debts of more than US$1.2 billion dollars.

The new board of governors will be chaired by Reserve Bank Governor Gideon Gono and he will be deputised by Charles Kuwaza. Other board members include Lawyer Mordecai Mahlangu, Dr Daniel Ndlela, Dr Godfrey Kanyenze, Nyasha Zhou and retired High court judge, George Smith.

The new board is in line with the amended RBZ Act signed by President Robert Mugabe in March. The Act will result in the bank concentrating on its core functions of formulating the monetary policy.

Since Gono took over the governorship of RBZ, the bank had been embarking on quasi-fiscal operations which led to the bank owing a huge debt to its creditors. The bank also employed a huge workforce during Gono's tenure and had been struggling to pay the workers ever since the Zimbabwe dollar was dropped from circulation.

Some of the creditors have attached RBZ property, which include cars and properties. One creditor tried to attach the old RBZ building and the RBZ sports club.

"We have appointed a board that in our view is second to none.There is a huge task at the bank.This board is expected to restore viability," Biti told a news conference in the capital.

"In terms of the bank's stock of debt is about US$1. 2 billion dollars.That is what we will intervene statutorily. I have said that before in private that this board is expected to restore viability, buoyancy, credibility, legitimacy and accountability at the bank. There is a huge task that has to be done at the bank," Biti said.

"There is a paradigm shift.We will stick to the law.The era when a Minister would say please buy me a car or tractor (to the centra bank is over."

"The bank right now as I said before, it's being hit by writs of execution left right and centre, and writs of execution are a disaster. So we have to deal urgently with the issues of debt," said Biti.