BANK of ZAMBIA

OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS

BOZ/EXEC/DGO/banksup/km
April 14, 2020

CB Circular No. : 14/2020
To : All Heads of Financial Service Providers

BANK OF ZAMBIA TARGETED MEDIUM-TERM REFINANCING FACILITY

The Bank of Zambia has introduced the Targeted Medium-Term Refinancing Facility (TMTRF) with effect from Wednesday, April 15, 2020. The main aim of the Facility is to strengthen and enhance financial sector resilience, particularly in the wake of the outbreak of the Coronavirus (COVID-19) and its potential devastating impact on the domestic economy.

Under the Facility, the Bank of Zambia shall provide liquidity to eligible Financial Service Providers (FSPs) for onward lending to viable and priority sectors of the economy. The priority sectors shall be as identified in the Seventh National Development Plan (7NDP) and shall include: Agriculture, manufacturing, energy and tourism. A certain portion of this Facility will also be made available to support non-financial corporates in other sectors as well as households.

The Terms and Conditions for the Facility are herewith attached for ease of reference. A soft copy of the Reporting Requirements, as guided under the Section 14, shall be shared with all Heads of the FSPs in due course.

For further information, relating to the Facility, kindly do not hesitate to contact the Bank of Zambia through the office of Director – Bank Supervision or Director – Non-Bank Financial Institutions Supervision, as appropriate.

Kindly be advised accordingly.

Francis Chipimo (PhD)
DEPUTY GOVERNOR – OPERATIONS

cc Governor

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