HARARE – Time Bank of Zimbabwe Limited (Time Bank) has dangled a syndicated US$35 billion economic-rescue package to help pay displaced farmers, unlock funding for other sectors and complement government’s debt resolution strategies.

While the reopened financial institution has identified up to 10 local groups “requiring urgent compensation”, the Chris Tande-led bank has also emphasised that its multi-faceted plan was not hinged on state borrowings from the Reserve Bank of Zimbabwe (RBZ), as it would rely mostly on private and global capital market funding.

“Time Bank has proposed to arrange syndicate loans of US$35 billion… for the purpose of financing… the compensation of 10 groups, including previous farm owners (PFOs) at US$ 3,5 billion (from the state), first group of indigenous farmers at US$7 billion (all under section 295 of the constitution) and refinancing foreign lenders at US$20,4 billion,” managing director Tande said in a statement accompanying the 27-year-old lender’s results.

He added the declaration “did not mean the US$35 billion was sitting in its vaults, as it was going to use its organisational skills and capacity to arrange such facilities, appropriate banking and non-inflationary solutions for the country’s benefit”.

“Other amounts are earmarked for the social welfare fund at US$2 billion, venture capital fund (VCF) at US$1,5 billion and financial inclusion at US$3,5 billion, pre-2009 bank depositors at US$1,1 billion, pensioners at an almost similar amount, insurance policy holders at US$400 million, ex-farm workers, displaced new farmers at nearly half a billion as well for improvements made on resettled land, and bilateral investors at US$400 million (hence the composite figure of nearly US$40 billion),” he said.

Tande said the “loans will be done in three phases by mobilising US$1 million-plus to purchase treasury bills (TB’s) from PFOs, leverage on the successes of the first stage to raise funds for the hefty US$3,5 billion compensation bill of the same group and, ultimately, US$31,5 billion for the larger groups”.

While Time Bank remains aware of a second agreement – outside the global compensation deed – between the Harare administration and former white commercial farmers, it was optimistic about the loan proposal’s approval based on the “fact that it could raise such monies without burdening the national fiscus”.

Meanwhile, the bank has made an impassioned plea for the resolution of its US$20 million blocked funds claim, which it says could also go a long way in helping its December 2024 recapitalisation plans.

Crucially, its market interventions and proposals, including the creation of a US$3,5 billion financial inclusion fund and stronger, self-financing social welfare system to be financed by value-added, and exportable Zimbabwean products was “driven by a desire to see a prosperous local business environment, which could also pacify investors by settling the lingering issue of property rights”.

“Time Bank’s pilot scheme can be launched before government approval of the project (and we are of the firm view that) a modern, successful economy needs both a free enterprise, and a solid social welfare to cater for the enterprising, and the vulnerable in general. With such an inclusive economy, it will be easier to establish a… sustainable social contract, which can drive economic development,” Tande said.

He said his revival plan would also ensure that Harare “borrows under structured instruments to insulate beneficiaries from suffering heavy TB-discount losses on the resale market, deepen and broaden capital markets as well as grow the country’s gross domestic product through these innovative products’ multiplier effect  by US$200 billion within 20 years.”