IN a press release dated 3 April 2020, the central bank in Africa’s red metal hot spot, Zambia, announced a set of measures to curb Covid-19 related credit risks. The Bank of Zambia will open credit lines to the tune of K10billion ($540million) in a Medium-Term Refinancing Facility (MTRF) to commercial banks to allow for liquidity provision to its clients.This measure will be targeted towards banks that will seek to cushion impacts of Covid-19 experienced by its clientele.Zambia’s credit assessment was lowered by Standards and Poor’s, Moody’s and Fitch to CCC, Caa2 with negative outlook of account of rising risks to growth fuelled by increased debt service energy risks and frail growth. Moody’s recently commented on Zambia’s debt situation and is confident that it will restructure its debt. Covid-19 effects adds adverse pressure to the copper producers’ fiscal posture and growth momentum. This stems from the slide in aggregate demand, business disruption and impact of […]
Zambia’s Central Bank steps in to curb ‘Covid-19’ credit risks
