Regulatory Alerts2014-01-01
Penalty on Late Settlement of Government Securities Transactions
The Bank of Zambia has instituted a penalty on the late settlement of government securities transactions, effective March 10, 2014. This charge is calculated using the Bank of Zambia Overnight Lending Rate as its baseline metric. The measure aims to strengthen market discipline by incentivizing timely settlement of government debt obligations.
BANK Of ZAMBIA
OFFICE OF THE DEPUTY GOVERNOR - ADMINISTRATION
10 March, 2014
CB Circular No: 06/2014
To All Heads of Commercial Banks
PENALTY ON LATE SETTLEMENT OF GOVERNMENT SECURITIES TRANSACTIONS
Notice is hereby given that effective March 10,2014, there shall be a penalty on late settlement
of Government Securities Transactions. The BoZ Overnight Lending Rate (OLR) shall be the
basis for computing the penalty on delayed settlement of Government Securities Transactions.
The introduction of a penalty on late settlement of Government Securities Transactions has been
necessitated to enhance market discipline.
D~abUla
DEPUTY GOVERNOR - ADMINISTRATION
Cc Governor
Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia. Tel: +260-211-229930 Fax: +260-211-222808 E-mail: tkmabula@boz.zm. Web: http://www.boz.zm