The Ministry of Finance has agreed with creditors to extend the repayment period for old Treasury Bills, a move aimed at reducing pressure on government finances.
Finance Minister Professor Mthuli Ncube said the agreement allows Treasury to spread out payments on legacy Treasury Bills over a longer period, easing the burden of large repayments due in the coming years.
The affected debt is made up of United States dollar-denominated domestic securities worth about US$4.37 billion, with maturity dates stretching from 2025 to 2043.
A major concern had been the heavy concentration of repayments between 2026 and 2034, where annual maturities were above US$400 million.
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Most of these Treasury Bills were issued in the past to compensate for blocked funds and to settle liabilities linked to the central bank.
Minister Ncube said the restructuring will help Government manage its finances more effectively.
“We have reached an agreement with creditors to spread these payments over time and reduce fiscal pressure,” he said. “This gives Government more room to focus on development, as debt repayment alone does not drive economic growth.”
He added that restructuring debt is a common practice in public finance and helps create fiscal space for key programmes.
The move is expected to smooth the repayment schedule, lower refinancing risks, and ensure that debt servicing does not limit spending on important sectors such as infrastructure, health, education, and social services.
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