The country’s largest financial services group by deposits and assets, CBZ Bank, is exposed to the cash-strapped government through Treasury Bills (TBs) to the tune of US$760 million.
By Chris Muronzi
Although TBs are one of the safest investment instruments and government always pays on maturity of its short-term securities, the risk of defaulting is growing due to its deepening fiscal crisis.
According to CBZ’s full-year financial results to December 31 2015 (FY15), the bank’s exposure to government paper rose from US$471 million in the prior financial year to US$760 million. CBZ...