Private Sector Development Association has observed that business that have had loans and overdrafts from Commercial banks are finding it difficult to pay back as well as servicing the debts due to Covid-19.
Association President Yusuf Dodia told Money FM News in an interview, although many domestic businesses owe the banks, there is an opportunity for banks to freeze interest rates and charges they might be levied on their customers during this difficult time so that the principal amount of money owed to financial institutions is still collectable.

Mr Dodia also said further interest rates could be frozen in the same way that banks would treat non-performing loans and loans that are about to be written off so that the private sector can have some breathing space in which to recover from the negative impact of the Coronavirus.
“In his address, the last week Finance Minister called on the Bank of Zambia and the banking fraternity to come up with measures that can support domestic businesses to survive, there is an opportunity for banks to freeze interest rates and charges they might be levied on their customers during this difficult time so that the principal amount of money owed to the banks is still collectable,” Mr Dodia said.

He added that this is an opportunity for the financial institutions to invest in their customers and find ways in which they can help them to survive in terms of negative business activities and when the businesses pick up, they are able to service loans and overdrafts with the banks and bring back life to normal.
“Banks recognize that any more pressure on customers might push them into liquidation and insolvency and may end up losing out on business,” he stated.
Mr Dodia further stressed the need for businesses to work together and find solutions to solve the problem to lack of positive business taking place during the pandemic.