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BAZ, BOZ finalise K10bn stimulus package terms

By BUUMBA CHIMBULU
TERMS and conditions of the K10 billion stimulus package aimed at providing liquidity in the economy have been finalised by the Bankers Association of Zambia (BAZ) and the Bank of Zambia (BoZ).
The Medium-Term Refinancing facility will take effect on April 15, 2020.
On Friday last week, BoZ Governor, Denny Kalyalya, said a three to five years facility would be available to eligible Financial Service Providers (FSPs) to enable them restructure or refinance qualifying facilities to eligible clients.
BAZ chairman, Herman Kasekende, said the discussions with BoZ on the Medium- Term Refinancing facility were concluded and terms and conditions finalised.
“The discussions between the Bank of Zambia and Bankers Association of Zambia in the past weeks have been to consider industry’s response to Coronavirus (Covid-19) pandemic and how to protect Zambian businesses during and after the Covid -19 pandemic,” Mr Kasekende said in a statement yesterday.
Mr Kasekende said BAZ welcomed the stimulus package which would scale up open market operations to provide short term liquidity support to commercial banks on more flexible terms than those obtaining before the outbreak of Covid-19.
He said BAZ also welcome the accommodative loan provisioning standards issued under Gazette notice No.287 of 2020, and the moratorium on the application of IFS 9 accounting standards to help protect businesses and households from financial shocks related to Covid-19.
Mr Kasekende said particular attention would be given to those sectors that were prioritised in the Seventh National Development
“The banks were agreeable to restructure loans and give repayment holidays and to responsibly support their customers and preserve the safety and soundness of the financial sector, while operating within the relevant regulatory frameworks,” Mr Kasekende said.
He reminded bank clients in need of financial support to contact their respective banks for specific terms and conditions.

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