The Bankers Association of Zambia – BAZ has called on local businesses in the country that have been impacted by the COVID-19 to take advantage loan packages offered by the banking sector to sustain their businesses during this period.
BAZ chief executive officer Leonard Mwanza told the Zambian Business Times – ZBT in an exclusive interview on April 16, 2020, that those in need of financial assistance should approach their respective banks to seek help for additional cash flow and loan restructuring.
Meanwhile, the Central Bank has taken strong measures aimed at ensuring businesses and households can be supported directly working through commercial banks and these include the establishment of a medium term refinancing facility of K10 billion which will enable banks and other financial services providers support businesses.
Absa Bank Zambia has also announced a loan repayment package holiday for 3 months for eligible customers impacted by COVID – 19 to ease the financial and economic implications the virus has brought on the country.
Mwanza has noted that local businesses have adversely being affected as cash flow has reduced, hence in order to meet their obligations, the banking sector has realized the need to help by providing them with options of financing their businesses.
He added that the closure of businesses and suspension of works inclusive of the businesses in the tourism industry has not spared the banking sector, however solutions are being found to enable the continued flow of funds in the country’s economy.
“We have also seen the mining industry advocating to go on care and maintenance, all these are signs that the economy is not doing well across most sectors, however financial solutions are being identified to help business sustain themselves especially in this period.
Mwanza has also encouraged the use of digital channels and mobile payment mechanisms to prevent the spread of the disease by minimizing person – to – person contact and decongesting Banking halls.
