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Alba Iulia
Saturday, July 24, 2021

Government and Financial Institutions Meet on Debt Swap for Civil Servants’ Salary-Backed Loans

Headlines Government and Financial Institutions Meet on Debt Swap for Civil Servants' Salary-Backed...

Ministry of Finance Accountant General Kennedy Musonda, Permanent Secretary Public Service Management Division (PSMD) Boniface Chimbwali and Permanent Secretary Information and Broadcasting Services Amos Malupenga, today held virtual meeting with commercial banks and other financial institutions to liaise on the implementation of the Civil Service debt swap initiative.

In his opening remarks, Mr Musonda said the data reconciliation exercise for the civil service debt swap initiative would take 3 months with effect from July 2021.

He told the online meeting that in the intervening period, the Government would not make any loan related deductions from Civil Servants’ salaries until the exercise is completed.

Mr Musonda clarified that the Government would continue to service obligations to eligible lenders as they fall due; in tandem with the reconciliation exercise.

He assured the meeting that third party obligations to banks are up-to-date.

“K55.3 million funding has been released today to clear all the third party obligations to commercial banks,” he said.

” The Treasury has also released K200 million today as third party payments to micro-finance institutions for the months of March and April 2021,”.

Mr Musonda added that other outstanding dues to micro-finance institutions would soon be cleared.

The Accountant General also took the opportunity to instruct banks and lending institutions to, henceforth, not extend salary backed loans to civil servants until the reconciliation process is concluded.

And the parties to the meeting agreed to continue the consultative spirit to ensure mutual satisfaction in the implementation of the initiative.

The 17 Institutions that took part in the virtual meeting, some of which were represented by the Bankers Association of Zambia, include Absa Bank, Access Bank Atlas Mara, Bayport, Eco Bank, Good fellow Finance, Indo- Zambia, Investment Bank, Izwe, Madison Finance, Natsave, Public Service Micro Finance, Stanbic, Stanchart, Totegram,Zambia National Building Society and Zanaco.

13 COMMENTS

  1. “..data reconciliation exercise for the civil service debt swap initiative would take 3 months with effect from July 2021.”
    They have no shame even rushing things through before August..5 mores years of Lazy Lungu will be a disaster.

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  2. As civil servants, we know where we will place our vote. This too little, too late gymnastic does not change anything

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  3. This Govt thinks Civil Servants are daft to fall for this false scheme. We hear only 60 000 Civil Servants are involved in the Scheme out of a Civil Service composed of 210 000 Head Count. The Govt chooses to assist these Employed Civil Servants at the expense of Retirees 204 000 debt free Civil Servants. So what will 204 000 benefit from the Debt Swap Scheme? What a Joke!

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  4. Why are taxpayers bailing out indebted private individuals? Beyond using their arrears to clear those debts it is unacceptable to not run that initiative by the citizenry.

  5. Tarino you don’t live in Zambia, leave us alone with our leader ECL. Why are you so affected by our internal affairs. Go and worry a about your boris Johnson

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  6. PF and ECZ are tallying rigged votes in line with the voter registration exercise! Here them talk as if the coming elections are a formality exercise that PF rule will be in continuation thus engaging in post elections promises and plans for implementation! God help Zambia!

  7. It is sad that the govt decides to do this at the expense of service delivery. Our hospitals and clinics have little or no essential drugs. Panadol is difficult to find at clinics. And yet we can mobilise so quickly funds to bail out private individuals who borrowed at own will. Is this prudent? And setting such a precedence may bite sooner than we think. Let’s be prudent with the meagre resources we have.

  8. When we said that the Debt Swap was done upside down we were called all sorts of names. Now that the Accountant General has added some bit of sanity to holding virtual meeting or discussion with the various lending institutions to allow govt reconcile debts for each individual and it will take three months. That is madness in the meantime the govt will not effect loan deductions during the 3 months ending 30/09/21 now what happens to the interest that will accumulate on the arrears and who is going to that cost? GRZ or the civil servants’ concerned. Now they are rushing to clear the unremitted monies for March and April 2021 but still will be in arrears from May to September 2021. Its obvious the Accountant General was left out from the initial discussions only to be brought on board…

  9. This is just like chilubas free house giveaway when he wanted to go for third term except this time they don’t have any physical assets to give so instead they are giving loan deduction reprieve but just for 3 months. But everyone knows the outcome then and now.

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