BoZ in K11.9bn requests for stimulus package

ABOUT K11.9 billion worth of applications have been received by the Bank of Zambia (BoZ) as at November 23, 2021 under its stimulus package.

These applications from both banks and non-banks are made to access the K10 billion Targeted Medium-Term Refinancing Facility (TMTRF).

The TMTRF was put in place by the Central Bank in April last year to cushion businesses and households from ravages of Covid-19.

As the initial allocated amount of K10 billion is almost exhausted, the Central Bank will review the overall facility and the relevant stakeholders will be informed of the next steps in due course.

This is according to the Bankers Association of

Zambia Public Relations Officer, Mirriam Zimba who said the applications were made up of 24 from 14 Commercial Banks and the total of applications received was about K11.9 billion.

Ms Zimba in response to a press query stated that K8.6 billion was from banks and K3.3 billion from non-bank financial institutions.

She explained that as at November 23, 2021, the Central Bank had received at total of 57 applications from 33 Financial Service Providers (FSPs) for advances under the TMTRF.

“The bank of Zambia approved a total of about K9.8 billion worth of applications, 20 applications were from 10 Commercial Banks with a total amount of K7.6 billion, while 21 applications, with a total amount of about K2.2 billion, were from 19 non-bank financial institutions,” Ms Zimba said.

According to Ms Zimba, a total of K4.8 billion had been disbursed to both banks and non-bank financial institutions and 61,807 customers benefited from the disbursed amounts.

She also indicated that in May 2021, the BoZ made changes to the Terms and Conditions of the TMTRF by removing the 60 percent and 40 percent split of available funds between targeted and non-targeted sectors.

The changes, Ms Zimba explained, also included flexibility for the BoZ to approve advances to non- targeted sectors for periods of up to five years.

“This measure led to increased drawdowns as some FSPs that had more appetite in one segment than others, utilised the available overall limit as opposed to approved targeted or non- targeted limit,” she stated.