First National Bank – FNB Zambia has confirmed that the Bank is participating in the K10 billion Medium-Term Refinancing Facility and is currently in the process of fulfilling terms and conditions required by the Central Bank to facilitate drawdown on the facility.
The Bank has disclosed that for new-to-bank or non-borrowing customer wishing to apply for a loan, FNB’s normal credit criteria will apply and is subject to assessment of but not limited to the three (3) years’ Audited Financial Statements, Projected Cash flow statements demonstrating ability to service debt and Primary banked with FNB.
Speaking exclusively to the Zambian Business Times – ZBT, FNB Head of Marketing and Communications Clotilda Mulenga said other credit criteria include acceptable collateral to cover requested facility and any other documentation the bank may require such as licenses and CVs of Directors based on the respective sector that the business is in.
She added that FNB has long prided itself as a digital bank hence customers can apply for help through the FNB App, reducing the need for unnecessary exposure in public places and that the amount that each customer qualifies for will be determined by their individual circumstances.
“As mentioned by BOZ, this assistance is a loan and the Financial Services Provider (in this case, FNB Zambia) carries the full risk of the facility and will be responsible to pay interest to BOZ from the date of drawdown, and capital when due. Therefore, we wish to note that normal credit principles will apply,” She said
“However, we remain committed working with the Central Bank to ensure that we responsibly help our customers where we can. We are committed to ensure financial stability and are committed to working with the Central Bank to ensure the right results are obtained,” She said
The Bank of Zambia – BOZ facility has been put in place to assist qualifying customers who have been negatively affected by COVID-19, with a focus on the Central Bank’s prescribed sectors as per the Seventh National Development Plan – 7NDP (i.e Agriculture, Manufacturing, Energy and Tourism).
The funds are therefore intended to protect businesses and individuals whose accounts were in good standing with commercial banks but are now facing temporal difficulties due to the COVID-19 pandemic. All customers from Small and medium enterprises to corporates that meet the criteria are eligible to apply.
