OVER LOANS
By BUUMBA CHIMBULU
THE terms and conditions under which loans obtained by the public service workers were contracted from commercial banks are still in force.
This is according to the Bankers Association of Zambia (BAZ) Chief Executive Officer, Leonard Mwanza.
Mr Mwanza however indicated that BAZ has taken note of the intention of Government and representatives of the Public Service Workers Union to provide relief to civil servants under the debt swap initiative.
“We wish to advise the public service workers with existing loans obtained from commercial banks and other financial institutions, that the existing terms and conditions under which these loans were contracted are still in force,” Mr Mwanza said.
In this regard, he said, all loans contracted under the Payroll Management and Establishment Control (PMEC) shall remain active and serviced by the Government.
“Equally, all loans contracted by public service workers through bilateral agreements with commercial banks and other financial institutions shall remain active and serviced through direct debit orders in individual bank accounts as contained in the existing loan agreements,” Mr Mwanza said.
He said the BAZ was awaiting guidance from the Government on the ongoing reconciliations and the debt buy-back mechanisms.
