Public Debt Management Act
- Commenced on 4 September 2015
- [This is the version of this document at 31 December 2016 and includes any amendments published up to 31 December 2017.]
- [Note: This version of the Act was revised and consolidated by the Law Development Commission of Zimbabwe]
Part I – Preliminary
1. Short titleThis Act may be cited as the Public Debt Management Act [Chapter 22:21].
3. Public debt management objectivesThe objectives of public debt management are to ensure that Government’s financing needs and its payment obligations are met at the lowest possible cost over the medium to long term, with a prudent level of risk, and to promote development of the domestic debt market.
Part II – Function and administration of Public Debt Management Office
4. Public Debt Management OfficeThe department of the Ministry responsible for Finance known as the Public Debt Management Office, which existed before the commencement of this Act, shall continue to operate in accordance with this Act.
5. Functions of Public Debt Management Office
6. Principal Director and staff of Public Debt Management Office
7. External and Domestic Debt Management Committee
8. Medium Term Debt Management Strategy
Part III – Loans, guarantees and other commitments
9. Responsibility of Office under Part IIIThe Office shall advise and assist the Minister in implementing this Part.
10. Interpretation in Part III
11. Borrowing powers and limit
12. Borrowing purposesThe Minister may borrow money in terms of section 11 for the following purposes only—
13. Manner of raising State loans
14. Certain State loans exempt from taxThe Minister may fix as a condition of a State loan that the capital and the interest payable thereon shall be exempt, either in whole or in part, from all or any particular tax payable in terms of any enactment and, if the Minister does so provide, the capital and the interest payable thereon shall be so exempt:Provided that the Minister shall not exercise the power conferred by this section in relation to a State loan where the capital is represented by securities that are registered in Zimbabwe unless the National Assembly has, by resolution, approved the exercise of such power in relation to that particular State loan.
15. Proceeds of State loansThe proceeds of all State loans shall be brought to account in the Consolidated Revenue Fund or, if the Minister so directs, in the National Development Fund established as a fund in terms of section 18 of the Public Finance Management Act.
16. Security for State loans and guarantees and expenses in connection therewithAll State loans and guarantees and expenses or charges incurred thereon or in connection therewith shall be secured and charged upon the assets and general revenues of Zimbabwe, and all such securities shall rank equally without priority.
17. Repayment of State loans and payment of expenses in connection therewithThe Minister shall, as circumstances require, pay from the Consolidated Revenue Fund, which is hereby appropriated to the purpose, moneys required to repay any State loan and any expenses or charges incurred thereon or in connection therewith.
18. Signing of loan agreements
19. Repayment, conversion and consolidation of loansThe Minister may, on such terms and conditions as he or she may determine, and, when necessary, with the concurrence of the lender—
20. Power to give guarantees
21. Payments in connection with guaranteesThe Minister shall—
22. Borrowing by local authorities and public entities
23. Restrictions on borrowing, guarantees and other commitments
24. Consequences of unauthorised transactions and how to exclude themIf a person, otherwise than in accordance with section 23, lends money to a Ministry, public entity, constitutional entity or statutory fund to which the Public Finance Management Act and this Act applies, or purports to issue on behalf of such a Ministry, public entity, constitutional entity or statutory fund a guarantee, indemnity or security, or enters into any other transaction which purports to bind such Ministry, public entity, constitutional entity or statutory fund to any future financial commitment, the State and that Ministry, public entity, constitutional entity or statutory fund shall not be bound by the lending contract or the guarantee, indemnity, security or other transaction:Provided that any person wishing to—
25. Minister to be exempt from certain obligationsThe Minister or a registrar or agent shall not be under any obligation as regards the due fulfilment of a trust, whether express, implied or constructive, to which bonds, stock or Treasury bills may be subject, notwithstanding that the Minister, registrar or agent has had notice that the bonds, stock or Treasury bills are held subject to the trust.
26. Registrar to make entries necessary to give effect to court ordersA registrar shall, upon being served with an order of a court of competent jurisdiction which relates to a bond or stock or has the effect of vesting a bond or stock in a person, make all entries in the appropriate register which it is necessary to make for the purpose of giving effect to the order.
27. Forgery of securities
28. Other powers of Minister
29. Disclosure of information concerning loans and guarantees
30. Monthly, quarterly and annual reports on loans and guarantees
31. Interest and repayment of loans to be direct chargesThe following payments in connection with loans shall be direct charges against the Consolidated Revenue Fund—
32. Establishment of sinking fundsThe Minister, in the case of a State loan raised by means of the issue of bonds or stock—
33. Trustees for sinking funds
34. Payment into sinking funds
35. Application of moneys in sinking funds
Part IV – General
36. Reporting to Parliament
38. RegulationsThe Minister may make regulations prescribing all matters which by this Act are required or permitted to be prescribed or which, in his or her opinion, are necessary or convenient to be prescribed for carrying out or giving effect to this Act, including (but not limited to)—
39. Amendment of Cap. 22:19The Public Finance Management Act is amended—
40. Amendment of Cap. 22:20The Sovereign Wealth Fund of Zimbabwe Act [Chapter 22:20] (No.7 of 2014) is amended—
History of this document
04 September 2015
Cited documents 0
Documents citing this one 4
- Makumire v Minister, Public Service, Labour and Social Welfare & Anor (CCZ 1 of 2020; Constitutional Application CCZ 21 of 2019)  ZWCC 1 (3 July 2019)
- Sakarombe N.O & ANor v Montana Carswell Meats (Private) LImited (Civil Appeal SC 865 of 2018; SC 44 of 2020)  ZWSC 44 (3 October 2019)
- Zimbabwe Government Gazette dated 2015-08-26 number 5
- Zimbabwe Government Gazette dated 2020-05-22 number 49