The Agriculture Marketing Authority (AMA) has launched a bid to raise US$80 million through issuance of agro bills to fund maize procurement by the Grain Marketing Board (GMB) for 2017.
In a statement issued today, AMA said the bills are being raised via CBZ and have a tenure of 360 days at an interest rate of 7.5 percent per annum.
Economic analyst Mr Persistence Gwanyanya said agro bills are a key fund raising method which will relieve pressure on the constrained fiscus.
“This is very important, its key farmers are paid on time especially with the relationship GMB has with the market. In the past farmers were not paid on time,” he said.
In September last year CBZ floated US$50 million worth of AMA grain purchase bills to fund maize procurement in the 2016/17 agriculture season.
The bills were 99.9 percent subscribed.