Regulatory Alerts2012-01-01
CB Circular 21/2012 Cash Advance to Commercial Banks for Currency Rebasing
The Bank of Zambia issues Circular 21/2012 to provide upfront cash advances to commercial banks to support the January 1, 2013 currency rebasing exchange exercise. To address banks' concerns regarding collateral, the central bank has established a compromise involving liens on bank assets as recourse for potential defaults. Commercial banks are required to enter into specific agreements with the Bank of Zambia before accessing these advances, which are intended to last for an initial period of up to one month.
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