The Bank of Zambia (BoZ) has disbursed over K1.7 billion to Financial Service Providers (FSPs) from the Targeted Medium-Term Refinancing Facility of the K10 billion stimulus package.
BoZ Acting Director for Communications, Nkatya Kabwe, has stated that the Central Bank has so far disbursed a total of K1, 747.66 billion to six banks and five non-banks.
In a statement availed to ZANIS in Lusaka today, Mr Kabwe explained that the Banks received K1, 526.24 billion and non-banks K221.42 million, respectively as at September 3, 2020.
“The status of applications, approvals and disbursements are as follows: BoZ has received applications from Banks and Non-Banks amounting to a total of K10.1 billion as at 3 September 2020, The BoZ has approved approximately K5.39 billion of the total applications received as at 3 September 2020 and The BoZ has disbursed a total of K1.747.66 billion to six banks and five non-banks, with K1, 526.24 billion and K221.42 million, respectively as at 3 September 2020,” the statement read in part.
And on reduced rates and repayment holidays, Mr Kabwe has underscored that a total of 13,398 clients benefited from the facility through reduced interest rates and repayment holidays ranging from three months to 1 year as at September 3.
The Central Bank has continued to record an increase in the disbursement of the stimulus package having paid out a total of K1 billion to financial service providers as at July 29, 2020.
In April 2020, the Bank of Zambia established a Targeted Medium-Term Refinancing Facility to enable Financial Service Providers support businesses and households that have been impacted by COVID–19.
The Facility has an initial amount of K10 billion and tenors of five years for priority sectors identified in the Seventh National Development Plan(7NDP) which include agriculture, manufacturing, tourism and energy and three years for other sectors.