Regulatory Alerts2020-01-01
Bank of Zambia Prudential Relief Measures in View of COVID-19
The Bank of Zambia has issued prudential relief measures to support financial service providers during the COVID-19 pandemic by extending IFRS 9 capital amortization relief until December 2022 and permitting non-bank institutions to partially utilize additional capital instruments. Financial service providers may restructure existing credit facilities through principal moratoriums and tenor extensions without triggering adverse loan classifications or delinquency reporting, while temporarily suspended collateral transition rules ensure legally perfected and recently appraised real estate remains valid. Additionally, the central bank established a K10 billion Targeted Medium-Term Refinancing Facility to deliver liquidity support to eligible institutions and strengthen private sector resilience.