* Fails to sell $30 mln in T-bills
* Banks demanding high yields for debt
* Zimbabwe struggles to revive debt market
By Nelson Banya
HARARE, Nov 6 (Reuters) – Zimbabwe failed to sell treasury
bills for the third time in around a month on Tuesday, traders
said, as wary banks brushed off government pressure to help
revive the domestic debt market.
Cash-strapped Zimbabwe is trying to relaunch its T-bill
market but has seen little interest from commercial banks, which
are demanding hefty yields to hold the short-term debt.
The central bank had said in private meetings it would
garnish money from foreign lenders as punishment for refusing to
buy the bills, one banker familiar with the matter told Reuters.
Dealers said Tuesday’s $30 million offering of 91-day bills
attracted just $8.65 million worth of bids, with yields ranging
from 8.5 to 12 percent.
The government relaunched the treasury bill market last
month but has managed just one successful auction in four
attempts — selling $9.85 billion on Oct. 26.
Continued…
