Regulatory Alerts2024-01-01
Stability and Resilience Facility Terms and Conditions
The Bank of Zambia has introduced the Stability and Resilience Facility to provide liquidity to licensed financial service providers for onward lending to agriculture businesses and clients impacted by recent drought-related electricity shortages. Eligible institutions can access advances up to 100 percent of their outstanding eligible loans with interest rates priced below the Monetary Policy Rate, featuring a 24-month principal and interest moratorium and a maximum seven-year tenor. FSPs must pass cost-of-fund benefits to borrowers, maintain prescribed collateral with applicable haircuts, and comply with strict reporting and mandatory early repayment provisions to avoid default.
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