Bankers Association of Zambia (BAZ) says commercial banks in the country have continued to play there intermediate role of ensuring that the growth sectors of the economy are supported.
Speaking in an interview with Money FM News, Association Public Relations Manager Miriam Zimba said this is evidenced from the distribution of funds under the Targeted Medium Term Refinancing Facility as announced by the Central Bank.
Ms. Zimba explained that according to the Bank of Zambia, as at 14th December 2020, Commercial Banks applied for about K6.8 Billion from the K10 Billion Facility, while the non-banking financial institutions applied for a total of K1.9 Billion.
“We are glad that as banks we continue to play our role in ensuring that growth sectors of the economy are financially supported,” Ms Zimba said.
“As of 14th December 2020, the Bank of Zambia received 31 applications from financial service provers requesting for funds under the stimulus package which include 13 are Commercial Banks while 18 are non-banks financial institutions.”
She added that the total value of applications received as of 14th December is K8.7 Billion and the amount applied for by the banks is K6.8 Billion.
“Out of the 8.7 Billion applied for the amount that has been approved by the Central bank for the banks is K7.8 Billion, representing approves for 10 commercial banks with a total value of K6.3 Billion,” she explained.
She noted that this showed that there is a lot of appetite among Zambians to accesses funds under the Facility and financial institutions in the country are meeting their mandate.
Ms Zimba that this is an indication that business entities and citizens are using their banks to apply for the facility and banks are playing their role to disburse the funds.
In April this year the Central Bank unveiled the Targeted Medium Term Refinancing Facility aimed at stimulating economic growth and production owing to the outbreak of Covid-19.