MID-TERM BUDGET REVIEW UNDERWAY EXTEND LOAN MATURITY PERIOD’ GOVT
6
Tuesday
Bank of Zambia (BoZ) should in- voke a law which extends the matu- rity of loans as most busibanks should con- sider extending existing loans for their clients as a fiscal stim- ulus for businesses that have been adversely affected by the current coronavirus (COVID-19), Economics Association of Zambia (EAZ) has advised.
EAZ Financial Analyst, Economist and Strategist, Mutisunge Zulu, said com- mercial banks should consider restructuring existing loans to assist their clients cushion the COVID-19 impact.
“We project to see more and more private sector play- ers such as commercial banks that should be restructuring already loans to small business as they discus with the clients.
“That will be a very good move that has happened in
I do not want to pre-empt
GOVERNMENT what I am going to say.
“We are doing a mid-term budget review, all those things will be done and when we are
nesses are not making interview that evoking the SI and ready thereby we will adding bring them a cost out,” to
money to meet their obli- would provide a relief to com- commercial Dr Ng’andu banks. said.
gations due to current mercial banks. He Meanwhile, said suspending Dr Ng’andu such COVID-19, ZANACO Head Zambia “So that Revenue piece of legisla- loans
stressed literally that he entailed was contemcom- Economic Research, Authority Patrick (ZRA) tion and will for pay sure out we have an mercial
plating banks on the had new to tax take relief an Chileshe, has said. K2.8 billion emergency Value Added on Tax our hands so entire
measures Copper loan as for slid a loss. to the record business lows of Finance (VAT) Bwalya refunds if the by aspect end of of this the coronavi-
The Minister, 2020 mid-term community. US$4,400 Dr Chileshe per stressed tonne. that Ng’andu, however month, with last week the largest rus meets share the being definition of an the Mr industries Zulu were stressed that the
budget review will be reThe Minister explained explained on Friday channelled said Government to the mining emergency, companies, then the Central and business some of review them taking were not place
leased this week, says that before measures were would issue Commissioner a Statutory General, Bank can Kingsley go ahead and invoke being could able mean to make a low adequate production Finance Chanda, Minister, has Bwalya said. approved, Government had Instrument (SI) to offer relief that piece of legislation. sales capacity to meet which their did loan not obli- spell Ng’andu. to take into consideration the to the financial Mr Chanda sector. said ZRA had “That as gives February time to banks gations. good fortunes for Zambia and Dr Ng’andu this year said paid in an out inK2 billion in VAT re- advantages apart from and disadvantages the fact that Dr Chileshe suggested to go to their clients and position give because the “The Democratic problem that Republic is there is of terview that funds. the Ministry of refunds, the actions. they also owe tax that BoZ should invoke SI them time to pay, because we owe BoZ them that Congo currently (DRC) if a in bank terms is go- of tax was currently “All undertaking I can confirm a is that we have con- “These we must measures, ensure we that sit, we ar
No 42 1996 section 18, has evoked the law, it assessments will not ing so revenues. to suspend loan payments mid-term tinued term budget refunding and mining a companies be- gue about before them, we we pay reflect out,” and he
subsection 4 which gave pernalised commercial get banks a net position because This, clients he said, cannot meant make that 2020 budget cause review. it is a statutory obligation lion, representing on part 22.0 said. perlook at the impact and so on. the Central Bank powers for breaking the law,” Dr any the revenues, industry the would bank cut is down to The extend Minister of the in provision ZRA. a recent All refundable for adChileshe cent taxes of said. must Gross be Domestic Mr Chanda one So that I ZRA cannot is going and pre-empt the to suffer Ministry that the
spending, thereby weaken- dress Non-Performing on the refunded. state of the Loans econProduct Dr Chileshe would feared come of that Finance from the would loss process because this because week it will have have every a to meet- meatake
ing mining sentiments as a omy (NPLs). projected “So a budget far we deficit have refunded current domestic to situation a tune revenues, of would ing while on in- sure account we which take had has your been an NPL impact put as in of a East Africa where loans have “We do not see the into plan consequence of lower metal of at He least explained K14.8 K2 billion billion in or January 19.7 an crease and the balance February. the number would We be of place NPLs raised to dismantle loss some to sort. them,” the VAT he refunds. said. been extended by one year or Government easing and giv- prices such as copper which percent of have the K106.0 allocated billion another through K850 million domestic in and The extermeeting, “So as he the said, business would commumarket players have been giv- ing tax holidays to Small and made it costly to run mines in National en three 2020 months March, Budget. so tax by holidays,” end of March nal Medium we financing. would Enterprises have chaired and busi- by the nity Southern Finance presents Africa. Minister, certain proposal, Bwalya Mr In Zulu his said budget refunded in an presentation interview. K2.8 billion and ness The we that will plans contin- could have adversely Ng’andu. however be Mr we Chanda look “Mineral at said it and one Royalty then of we ob- Taxes sit
Mr last Zulu, ue year, to also refund,” Dr serving Ng’andu he said as in come an impacted interview. under by threat the due coronavirus jectives to the was and to (MRT)are find reflect, a solution paid what in it dealing will dollars do, in EAZ National indicated Mr Secretary, Chanda that said said of ZRA Covid-19, because had recently forcing this will re- Government just with reduce the refund what Zambia arrears. will and be the He with impact gave a lower assur- here, cop- such a move cruited had the accountants been K106.0 done and to any undertake auditors collections new on a to initiatives. the ance coffer,” that Government will per it price achieve was and the committed a desired weak produc- goal to by Standard Bank six months billion, in South basis to he “If assist said. you with give us the a little ensure bit of that or all tion those whatever?” level, that means had Dr legitimate that Ng’andu MRT Africa. reconciliation K72.0 some of Meanwhile, accounts. time, you This will Mr be VAT Zulu able claims said to said. and will other be lower refunds and were the build paid. up
He said it was highly unlike- process, bilhe get the explained, more mining information industry was “I because was can cur- assure you to Dr show is Ng’andu that declining we emphasised are refunding reserves the be- ly for the Bank of Zambia going to on it rently is well. a national reviewing question. their to the busi- extent need that come is to a manageable weigh key concerns Government because because ease monetary policy rate as it “We nesses So are I will to engaging suit be the able current if to you issue low refund revenue reserves everything, and are support at you risk,” may to Mr businot Zulu had bottomed. mining something copper companies prices. next week have [this the money ness said. before for treasury any measures so it has were to
to week. agree on exact be managed,” approved Mr Chanda and said. implemented.
BUUMBA CHIMBULU THE
So as the business community presents certain proposal, we look at it and then we sit and reflect, what it will do, what will be the impact here, will it achieve the desired goal or whatever?”
for royalty to be at least 50 the Covid-19. per cent share of banks revenue are as
“We maintain that capital some ready neighbouring to cooperate suspension and countries offer controls are an increased of have digital the done, 10 payment percent Business channels export Expert duty possible outcome in 2020,” on Mwimba to reduce crocodile Bwalya usage skins has of will cash said. unlock said the Kwacha Arbitrageur liquidity He said in the under directive industry the Mineral by which for following April, 2020. has Royalty the Bank been Tax, of constrained Zambia foreign investors (BoZ) over
Capital controls are the would to adjust years, continue upwards Zambian being the Crocodile the daily measures introduced by Farmers major transaction beneficiaries Association limits for of electronic (ZaCFA), revenue Central Banks to regulate has while money. said. Zambians would end up how much money enters and getting Finance This a is paltry according Minister, percentage Bwalya to the of leaves a country. Ng’andu, revenue. Bankers Association on Friday last of
The Arbitrageur, a monthly week Zambia Mr Bwalya announced (BAZ) cited Chief various Zimbabwe Executive bulletin prepared by financial measures which Officer, had Leonard that increased Government Mwanza. mineral analysts, indicated that was royalty Last undertaking to week, 70 per the cent, to BoZ cushion revised capital controls were likely business Botswana upwards the from at 55percent transaction the economic and to be introduced given the impact Tanzania balance posed limits at 60 by for per the electronic cent, while long-term view for a weaker COVID-19 Zambia’s money to royalty encourage outbreak. was use between Kwacha.
5 of to Among digital 10 per financial them cent. is the services
“Already said there the Bank was also of suspension in He Zambia in of the the wake 10 percent of Zambia for has Government announced to export need coronavirus duty on outbreak. precious introduction the Act of for a constrained royalty to metals review Mr Mwanza and crocodile said banks skins. and be pricing an all-inclusive mechanism of dubbed natural other ZaCFA financial Publicity institutions Secretary, had the ‘crawling like peg’, oil, natural but gas, Bill resources taken Thomas, a lead said in developing the suspension farm should lands, that fail, forests had we come and would at not digital and electronic payment an just not opportune be mineral surprised resources. time to when see more channels. the stringent “Zambia industry regulations. is faced blessed liquidity with rich
He said the anking sector problems natural “This resources can due include to the that the high can had been advocating for the export turn conversion the duty economic of imposed foreign fortunes in the of reduction of cash as means of 2019 the currency country, Budget. deposits, hence, increased the need payment in the economy. for documentation Mr Government Thomas explained for to repatriation review
“The decision by the that the or Bank the Mines the of introduction suspension Zambia and Minerals is of therefore of a duty time essentially Development window responding to delay saved to Act this conversion No. the call, industry 18 much of from 2018 into as it foreign is collapse for a Mineral mitigation currency,” and Royalty would measure. the go to be a at Arbitrageur long least “While way 50 the per to said. measures protecting cent share are rural of jobs revenue. meant The and Kwacha to generating “If mitigate this is not currently against done, foreign the exchange country trading the potential around will earnings. continue viral 18.325 circulation getting and