Finance Minister Dr Bwalya Ng’andu says there has been low uptake by Businesses of the K10 Billion Stimulus Package set aside by the Bank of Zambia for economic recovery amidst the Coronavirus pandemic.
Dr Ng’andu says the lack of information on the stimulus package among the intended beneficiaries has led to few of them accessing the facility from Commercial Banks.
He said at a media briefing that the Government will now increase the number of non bank financial institutions that will participate in the disbursement of the money because most of the small and medium enterprises access loans through such facilities.
Dr Ng’andu said most SME’s do not access loans through Commercial Banks and expressed hope that the engagement of non Bank Financial Institutions will increase the uptake of the facility.
Early April 2020, the Bank of Zambia announced that it has established a Targeted Medium-Term Refinancing Facility with an initial amount of K10 billion to provide medium term liquidity in light of the Covid-19 outbreak.
In a statement, Bank of Zambia Governor Denny Kalyalya said the K10 billion was part of a comprehensive list of measures that the central bank was taking to respond to the Covid-19 crisis.
Dr Kalyalya explained that this is a three to five years Facility that will be available to eligible Financial Service Providers to enable them restructure or refinance qualifying facilities or on-lend to eligible clients and that the amount will be reviewed as conditions warrant.