Central Bank says individuals, households had largest share of K10bn facility


Zambanker, the respected journal published by the Bank of Zambia (BoZ), has reported that individuals and households are one of the largest beneficiaries of funds accessed from the K10 billion Targeted Medium-Term Refinancing Facility (TMRT).

These are funds that were disbursed by Non-Bank Financial Institutions (NBFIs).

Individuals and households had the largest number of beneficiaries of 55,571 followed by wholesale and retail trade accounting for 15,511 beneficiaries.

The journal issued on Thursday indicated that this was from a total of 85,101 customers who benefited from these disbursements.

The TMTRF was introduced in April 2020 by the Bank of Zambia (BoZ), and designed to strengthen and enhance the resilience of the financial system.

The TMTRF is made available to eligible Financial Service Providers (FSPs), whose role is to provide credit to non-financial enterprises and households to improve liquidity in the financial sector and help drive the growth and diversification of the economy.

Read more: Bank of Zambia explores ways to fund SMEs to remedy gaps in 2020 refinancing scheme

The Bank in 2022 conducted thematic asset quality review of the banks and NBFIs for the period 2019 to 2021.

Among the results from the review was that individuals and households received 75.8 percent, amounting K1.81 billion.

They were followed by large corporates which received 21.0 percent, amounting K0.50 billion while Small and Medium Enterprises (SMEs) received 3.2 percent, or K0.08 billion.

These funds were accessed from the K2.39 billion disbursed to NBFIs by the Central bank.
“The benefits passed on to ultimate beneficiaries included a combination of low interest rates and moratoriums,” the journal stated.

Regarding disbursement, as at end December 2022, a total of K9.96 billion had been disbursed to both banks and NBFIs.

These were valued at K7.57 billion and K2.39 billion, respectively.

“The amounts represented a 99.6 percent disbursement rate out of the approved amounts. A total of 85,101 customers benefited from these disbursements.

“From the total approved TMTRF allocation of K7.61 billion to the banking sector, the Bank of Zambia cancelled the undrawn balances amounting to K0.04 billion due to the inability by banks to utilise the balances,” the magazine indicated.

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