Regulatory Alerts2022-01-01
Bank of Zambia Targeted Medium-Term Refinancing Facility Circular No. 07/2022
The Bank of Zambia announces that the K10 billion allocated under its Targeted Medium-Term Refinancing Facility has been fully exhausted. Originally introduced in April 2020 to support viable economic sectors and strengthen financial sector resilience during the pandemic, the facility provided liquidity to eligible financial service providers for onward lending. The central bank will now conduct a comprehensive assessment to evaluate the program's performance and determine its overall effectiveness against the initial policy objectives.
[Logo: Bank of Zambia]
BANK OF ZAMBIA OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXEC/DGO/bsd/bp
March 25, 2022
CB Circular No. : 07/2022
To : All Heads of Financial Service Providers
BANK OF ZAMBIA TARGETED MEDIUM-TERM REFINANCING FACILITY
The Bank of Zambia, through CB Circular No. 14/2020 issued on April 14, 2020, introduced the Targeted Medium-Term Refinancing Facility (TMTRF) intended to strengthen and enhance the resilience of the financial sector. This was in the wake of macroeconomic challenges and the anticipated negative impact of the COVID-19 pandemic. The liquidity provided under the TMTRF was targeted at eligible Financial Service Providers and was meant for onward lending to viable sectors of the economy to support businesses and households that were impacted by the outbreak of the pandemic.
The Bank of Zambia now wishes to advise that the K10 billion allocated for this purpose has been exhausted. The Bank will be conducting an assessment to review the performance and ascertain the effectiveness of this intervention against the intended objectives.
Kindly be advised accordingly.
[Signature]
Francis Chipimo (PhD) DEPUTY GOVERNOR – OPERATIONS
cc Governor Director – Bank Supervision Director – Non-Bank Financial Institutions Supervision
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