Masvingo Leaps Into The Money Market To Survive

Wisdom
2 Min Read

By Correspondent

Masvingo City Council has decided to invest in the money market in a bid to both protect and grow its financial base.

The decision was taken recently at a Full Council meeting where Councillors approved the idea.

Finance Director Danister Jori proposed the idea to invest US$600 000.

Masvingo has USD450,000 held with ZB Bank and National Building Society (NBS) has USD 150,000.

According to Jori, ZB Bank offered an interest of 7% per annum whilst NBS offered interest of 6.5% per annum.

“Consideration was given to the report of the Finance Director on the request for authority to invest a total amount of USD 600,000 for a period of thirty days on the money market.

Management also requested for permission to rollover the investments at the prevailing market terms.

This will go on until the specific projects commence.

The funds will not be used in the immediate future pending procurement of essential materials.

Defending the decision, officials said the regulator of financial institutions has not raised any alarm on the operations of the two banks.

Councillors have since approved the arrangement.

Investing Council funds on the money market is provided for in the Urban Councils Act Chapter 29:15.

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