2020-06-05
Added · Updated
The Bank of Zambia issued Circular No. 19/2020 to amend the Targeted Medium-Term Refinancing Facility by expanding eligible collateral to include Salary Backed Loans classified as Pass and reducing the haircut on Secured Loans for Commercial Banks from 50 percent to 45 percent. Financial service providers must apply these updated terms and conditions to their existing refinancing arrangements. The circular directs all heads of financial institutions to implement the revised framework effective immediately upon issuance.
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OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXEC/DGO/bsup/bp
June 5, 2020
CB Circular No. : 19/2020
To : All Heads of Financial Service Providers
Refer to the captioned matter.
Further to CB Circular No. 16/2020 issued on May 8, 2020, please be advised of the amendments to Clauses 8.1 and 8.2 of the Terms and Conditions of the Targeted Medium-Term Refinancing Facility. This amendment has included as eligible collateral for the above mentioned Facility, Salary Backed Loans Classified as Pass and the reduction of the Haircut from 50% to 45% on Secured Loans for Commercial Banks.
Find attached herewith the amended Terms and Conditions for your ease of reference.
Kindly be guided accordingly.
Francis Chipimo (PhD)
DEPUTY GOVERNOR – OPERATIONS
cc
Governor
Deputy Governor – Administration
Director – Non-Bank Financial Institutions Supervision Director – Bank Supervision General Counsel
Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia Tel: +260-211-399303, 399300, E-mail: dgo@boz.zm. Web: http://www.boz.zm
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Source: Bank of Zambia — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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