Wed, 08 Nov 2017 12:29:38 +0000 By Buumba Chimbulu GOVERNMENT delays in paying contractors who borrowed from commercial banks is also affecting the Non-Performance of Loans (NPLs) which stood at 11.8 percent as at end of September 2017, says Bankers Association of Zambia (BAZ). BAZ chief executive officer, Leonard Mwanza, said economic conditions and higher interest rates had led to failure to meet loan obligations and this had increased NPLs. Mr Mwanza explained that the legacy of monetary policy tightening in 2015-2016 mopped up liquidity from the market leading to higher interest rates resulting to banks carrying high cost fixed deposits from pension houses such as National Pension Scheme Authority that were expected to unwind in the fourth quarter of 2017. “Inability to meet loan installments due to high interest rates as well as effects of the slowdown in economic activities which came about due to load shedding, low copper output and prices and stringent […]
