• K200 million released as third-party payments to micro-finance institutions for the months of March and April 2021.
• A further K55.3 million targeted at clearing third-party obligations to commercial banks up to June 2021.
• Data reconciliation exercise for the civil service debt swap initiative will take 3 months.

Government says the Treasury has released K200 million as third-party payments to micro-finance institutions for the months of March and April 2021 in respect of civil servants’ salary backed loans, and a further K55.3 million targeted at clearing third-party obligations to commercial banks up to June 2021.
Yesterday, Ministry of Finance Accountant General Kennedy Musonda, Permanent Secretary Public Service Management Division (PSMD) Boniface Chimbwali, and Permanent Secretary Information and Broadcasting Services Amos Malupenga held virtual meeting with commercial banks and other financial institutions to liaise on the implementation of the Civil Service debt swap initiative.
And in his opening remarks, Mr. Musonda said the data reconciliation exercise for the civil service debt swap initiative will take 3 months with effect from July 2021.
He stated that in the intervening period, Government will not make any loan related deductions from Civil Servants’ salaries until the exercise is completed.
Mr. Musonda also clarified that Government will also continue to service obligations to eligible lenders as they fall due in line with the reconciliation exercise.
He assured the meeting that after the release of K55.3 million, third party obligations to commercial banks are now up-to-date as at June 2021.
“The Treasury has also released K200 million as third-party payments to micro-finance institutions for the months of March and April 2021 and outstanding third-party obligations to micro-finance institutions would soon be cleared,” Mr. Musonda said.
Mr. Musonda further instructed commercial banks and lending institutions not to extend salary-backed loans to civil servants until the reconciliation process is concluded.
The parties to the meeting agreed to continue the consultative spirit to ensure mutual satisfaction in the implementation of the initiative.
This is contained in a statement made available by Ministry of Finance.