Regulatory Alerts2021-01-01
Terms and Conditions for the Targeted Medium-Term Refinancing Facility
The Bank of Zambia issued the Targeted Medium-Term Refinancing Facility to inject liquidity into eligible Financial Service Providers for onward lending to viable non-financial entities and priority sectors like agriculture, manufacturing, energy, and tourism. Eligible institutions must secure advances with prescribed collateral, adhere to borrowing limits calculated against outstanding performing loans, and pass on low interest rates aligned with the Monetary Policy Rate to their clients. The framework mandates monthly and quarterly reporting, allows for early repayment after eighteen months, and imposes mandatory early repayment or default penalties on FSPs that fail to comply with eligibility criteria, reporting obligations, or fund utilization requirements.