The Bankers Association of Zambia (BAZ) has clarified that the COVID-19 stimulus package from the Bank of Zambia will still be subjected to interest rates or collateral for one to access from the banks.
BAZ Chief Executive Officer Leonard Mwanza however says Small and Medium Entrepreneurs are expected to access the funds at around 26 percent interest rate and not the market rate.
Mr. Mwanza says the COVID-19 stimulus package is not free money that is being given out without any interest.
He has further explained to ZNBC news in a telephone interview that the Central Bank has continued to release the funds to the banks and that it is an ongoing process.
Mr. Mwanza was reacting to an appeal by the Cleaning Association of Zambia who are in the SME category to Banks to reduce interest rates in view of covid-19.
Cleaning Association of Zambia President Lawrence Makumbi said most of his members’ businesses have been affected by COVID-19 and that the workforce has reduced.