Regulatory Alerts2012-01-01
CB Circular 25/2012 Maximum Effective Annual Lending Interest Rates
The Bank of Zambia issued Circular 25/2012 to cap maximum effective annual lending interest rates for commercial banks starting January 2, 2013. The regulation limits rates to the prevailing Bank of Zambia Policy Rate plus a maximum margin of 9 percentage points, resulting in a cap of 18.25% based on the current 9.25% policy rate. This cap applies to new loans while existing loans remain on current terms unless refinanced, pending the issuance of a formal Cost of Borrowing Gazette Notice.
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