Regulatory Alerts2020-01-01
Terms and Conditions for the Targeted Medium-Term Refinancing Facility
The Bank of Zambia introduced the Targeted Medium-Term Refinancing Facility to provide liquidity to eligible Financial Service Providers for onward lending to priority sectors and viable non-financial corporates. Eligible institutions must pledge prescribed collateral, adhere to borrowing limits calculated on outstanding performing loans, and pass on discounted interest rates aligned with the Monetary Policy Rate to their clients. The framework mandates strict reporting schedules, imposes mandatory early repayment for non-compliance or fund misapplication, and provides five-year tenors for priority sector lending alongside a twelve-month principal and interest grace period.
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