Regulatory Alerts2004-01-01
Reserving Financial Instruments for Intraday Credit in ZIPSS
The Bank of Zambia requires all commercial banks to reserve Treasury bills as collateral for intraday credit facilities ahead of the June 21, 2004 launch of the Zambian Interbank Payment and Settlement System (ZIPSS). Banks must submit a prescribed transfer form at least five working days in advance, and any intraday credit extended must be fully repaid by 16:00 hours to avoid conversion into a permanent rediscount subject to standard penalties. Reserved Treasury bills are restricted from secondary trading during the reservation period, and the credit facility is strictly limited to facilitating real-time gross settlement payments within existing rediscounting limits.
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