Zimbabwe: RBZ workers to lose jobs in shake-up
source: SW Radio Africa
By Irene Madongo
30 August 2010
The Finance Miniser Tendai Biti says up to 2,200 workers at the Reserve Bank of Zimbabwe will lose their jobs as part of plans to cut its expenditure and get it functioning effectively, according to media reports.
On Sunday it was reported that the Minister said the bank will have to make 85% staff cuts – leaving the institution with 400 out of 2,600 workers.
Under Governor Gideon Gono the bank took out loans it could not afford and failed to pay local and foreign companies tens of millions of dollars. It also failed to pay workers and was dragged to court for rent arrears. In June Zimbabweans were forced to take on the burden of the RBZ debt, reported to be US$1.1bn, after Robert Mugabe used his presidential powers to shift the banks liabilities onto the state. Gono’s decision to continuously print money also created an inflation rate that reached into the billions and the situation was only stabilized when the country had no choice but to get rid of the use of the Zimbabwe dollar.
Despite the good news that the Minister is trying to bring some sanity back to the [continue reading]