Regulatory Alerts2024-01-01
Changes to Operating Rules and Guidelines for the Overnight Lending Facility
The Bank of Zambia has amended its Overnight Lending Facility guidelines to immediately accept government bonds as eligible collateral for the Intra-day Liquidity Facility. The circular also establishes a thirty-day limit for overnight loan extensions, after which unpaid transactions are classified as defaults and the underlying securities remain locked. Commercial banks must continue to clear outstanding overnight facility loans before applying for or requesting new extensions.
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