The Fund will begin operating on March 1 and will be pooled by mobilising support from both local and international investors.
The SPV will be owned by the contributors who would be shareholders represented on the Board of Directors. They will run the affairs of the Fund which will be chaired by the RBZ.
Based on the size of the country’s Gross Domestic Product (GDP), it is estimated that an amount of US$150 million is required for the smooth functioning of the lender of last resort,” Gono said.
“Against this background, the government will avail an additional US$23 million by the end of next week towards the lender of last resort fund to bring the total to US$30 million.”
He admitted that US$150 million, could not sustain the RBZ needs coming at a time when Zimbabwe is facing another serious liquidity crisis.
Commercial banks have run out of cash and there are now very long queues as all the commercial banks especially those owned and operated by indigenous business entrepreneurs.
Gono said the RBZ needed at least US$150 million to enable it to support the country’s struggling commercial banks.
Gono said about US$80 million would be sourced from Afreximbank to boost its role as the lender of last resort.
The RBZ has been failing to meet its obligations as the lender of last resort and the cash will help allay fears of an impending financial disaster in Zimbabwe.
Gono said plans are also underway to get funds from major international donors.