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BoZ disburses K6.1 billon of K10 billion stimulus package

• As at May 31, 2021, a total of 50 applications has been received of which 20 are from Bank and the remaining 30 from NBFIs.
• Of the total 50 applications received, 23 have been approved representing about 84.1% of the value applied for.
• The Funds were intended to offer liquidity support for on-lending/refinancing of borrowers.

Bank of Zambia (BoZ) has disclosed that it has so far disbursed K6.1 billon of the K10 billion Targeted Medium Term Refinancing Facility (TMTRF).

Speaking during a Media Seminar in Kabwe, Bank Assistant Director-Financial Market Stability Unit, Goodson Kataya, said as at 31st May, 2021, the Central Bank received a total of 50 applications of which 20 are from Banks, while the remaining 30 from Non-banks.

Mr. Kataya stated that the total value of applications received so far stands at K10.5 billion.

“Of the total 50 applications received, 23 have been approved representing about
84.1% of the value applied for. 11 of these approved applications are from
Commercial banks while the rest are from Non-Bank Financial
Institutions (NBFIs).”

“So far, a total of K6.1 billon has been disbursed to seven (21) FSPs. So far, most of the funds have gone to priority sectors at about K5.3 billion while K3.4 billion to non-priority sectors” Mr. Kataya said.

He added that a total of 49,093 clients have benefited from the facility comprising mostly individuals and households.

The Targeted Medium Term Refinancing Facility was introduced in April 2020 with an initial amount of K10 billion, to strengthen and enhance the resilience of the financial sector and also support economic recovery in the wake of the COVID-19 pandemic. The Funds were intended to offer liquidity support for on-lending/refinancing of borrowers.

Priority was to sectors that would support recovery in Agriculture, Energy, Tourism and Manufacturing. But 40% of the Fund was also reserved to support other non-financial corporates.

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