THE Reserve Bank of Zimbabwe’s much-maligned quasi-fiscal operations chalked up some US$200 million in debts which the central bank is now struggling to repay.

As the country’s economy teetered on the brink of collapse in the last decade the RBZ resorted to extensive quantitative easing, splashing the minted cash on various programmes such maize seed and fertilizer procurement in a bid to shore-up the country's agriculture.

The RBZ also made various facilities available to private and state-run enterprises, government ministries including the funding elections.

State media reports indicate that the farm-mechanisation programme alone chalked-up debts of some US$200 million.

However, most of the beneficiaries – many of whom accessed tractors and other key farming plant and equipment – have not bothered to pay back the loans.

The quasi-fiscal operations – which critics claim were not successful and only helped stock-up inflation – left the central bank with massive debts of about US$1.2 billion.

The bank insists the programmes helped mitigate the effects of sanctions imposed by Western countries which the previous Zanu PF government blames for the country’s economic problems.

The bank recently confirmed that it would sack some 1600 employees as part of efforts to streamline operations and bring down costs.

RBZ chief, Gideon Gono has also confirmed plans to dispose of some bank assets to help retire the debt.

Investments targeted for disposal include a 64 percent holding in Cairns, the 65 percent interest in Astra and a 62 percent stake in Tractive Power. The three companies are all listed on the Zimbabwe Stock Exchange (ZSE).

"We are trying to sell some of the bank’s subsidiaries including Astra, Transload, Cairns, Thuli Coal and Tractive Power," Gono was quoted as saying.