• The existing terms and conditions under which these loans were contracted are still in force.
• Loans obtained by Civil Servants under PMEC will remain active and serviced by the government.
• Last week, government commenced the process of debt swap across the civil service.

Bankers Association of Zambia (BAZ) says loans obtained by Civil Servants under the Payroll Management and Establishment Control (PMEC) will remain active and serviced by government.
Association Executive Director Leonard Mwanza advised civil servants who got loans from financial institutions that the existing terms and conditions under which the loans were contracted are still in force.
Mr. Mwanza said in the same vain, all loans contracted through bilateral agreements with commercial banks and other lending institutions will remain active and serviced through the direct debit orders in individual bank accounts as stipulated in the existing loan agreements.
“The Bankers Association of Zambia has taken note of the intention of government and representatives of the public service workers’ unions, to provide relief to public service workers under the debt swap initiative.”
“We wish to advise Public Service workers with existing loans obtained from commercial banks and other financial institutions that the existing terms and conditions under which these loans were contracted are still in force. The Association waits further guidance from the government on the ongoing reconciliations and debt buy-back mechanisms,” Mr. Mwanza said.
Last week, government commenced the process of debt swap across the civil service.
Under the debt swap arrangement, Civil Servants’ loan servicing cycle under different financial institutions will be repatriated to the Public Service Micro Finance Company, where the repayment will be implemented with low interest.
According to Information and Broadcasting Services Permanent Secretary Amos Malupenga, no deductions will be made from Salaries of all civil servants for the next three months effective July, 2021.
“All Civil Servants having Loans and advances will get their full salaries for the next three months starting from July,” he said.