The Zambia National Commercial Bank – ZANACO acting Chief Executive Officer Lishala Situmbeko has confirmed that the Bank’s clients has started tapping into the K10 billion facility and is giving relief packages to its customers that have been negatively hit by the Covid – 19 outbreak.
Situmbeko has told the Zambian Business Times – ZBT in an exclusive interview that ZANACO is availing funds on its normal credit process and conditions, given that the whole lending environment is regulated and following the guidance given.
“Right now, we are focusing on helping our customers by giving them cash flows especially those hit negatively, however we are making sure that funds are available but I cannot mention how many have so far applied or to what percentage is this process being done,” he added.
Situmbeko has also noted the need to strengthen Zambian businesses by gaining extra support from customers to enable the business community deal with the current problems arising from the Covid – 19 pandemic.
He said it is important to not only concentrate on the lending side but also ensure that the behavior of customers meet satisfactions of commercial banks.
BOZ introduced a K10 billion Medium- Term Refinancing Facility (stimulus package) to enable Financial Service Providers (FSPs) support businesses and households that are being impacted by COVID-19.
The ministry of finance further indicated that the facility is only available to individuals and businesses through their respective FSPs, however priority is to support sectors that will propel economic recovery and stimulate private sector led growth.
BOZ has explained that sectors identified in the 7NDP such as the agriculture, manufacturing, energy and tourism are priority and will receive 60% of the facility while the rest of the sectors shall access the remaining 40%. BOZ Governor Denny Kalyalya however stated that there has been no disbursements yet, though about 30% of the applications from the various FSPs have been approved.
