The Bankers Association of Zambia(BAZ) has advised 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.
In a press statement released to the media, the Bankers Association of Zambia CEO Leonard Mwanza stated that 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.
Last week the government announced the commencement of the process of debt swap across the civil service. This followed a signing ceremony of the addendum to the current collective agreement on the implementation of debt swap for the civil service between the Government and the Public Sector Unions.
Information and Broadcasting Services Permanent Secretary Amos Malupenga said no deductions will be made from salaries of all civil servants for the next three months effective immediately.
“All Civil Servants having Loans and advances will get their full salaries for the next three months starting from July,” he added.
Mr. Malupenga said the debt will be owed to their employers in this case government. He said third-party institutions will be directly be dealt with by their employers.
Last year Government secured K500 million to help clear outstanding debts for civil servants through swapping of what government owes workers such as leave benefits and settling allowances among others.
However the Banks Association is awaiting guidance from the Government on the ongoing reconciliations and the debt buy-back mechanisms.
Below is the Full Press Statement
BANKERS ASSOCIATION OF ZAMBIA MEDIA STATEMENT IN GOVERNMENT’S DEBT SWAP INITIATIVE FOR PUBLIC SERVICE EMPLOYEES
Lusaka ,July 22,2021– The Bankers Association of Zambia(BAZ) has taken note of the intention of the Government and representatives of the public service workers’ unions,to provide relief to public service workers 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.
In this regard,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 debit orders in individual bank accounts as contained in the existing loan agreements.
The Association awaits further guidance from the Governement on the ongoing reconcilliations and the debt buy-back mechanisms.
Issued by
Banks Association of Zambia
Leonard Mwanza (Mr.)
Chief Executive Officer
This is now a tag of war ..
Who will we listen to now ?
Or we wait and see how everything unfolds
Commercial banks and micro-finance institutions will certainly get their pound of flesh. I told my colleagues we are only going to be fools to ever trust ‘politicians’ in a campaign season to give us free gifts. Where in the world has this ever happened? As Ronald Reagan famously once stated prior to him being elected President “Never trust a man who comes to you and says am from the government and am here to help you…never”
This PF government is broke and has no money to pay for its workers debt obligations to private financial institutions; it defaulted on the Eurobond $42.8million. Do not bury your heads under the sand.
The BAZ has stuck to its guns and deductions will effected during the 3 months period as long as the salary pay will be made through the banking system unless the govt is going to pay cash straight to its employees owing money. To the lenders its business as usual and now you how civil servants are being cheated by their employer. The loans agreements are still and will remain in force with individual borrowers not otherwise. Chapwa so what was Amos Malupenga and others trying to grow hair on an egg. Lies have got short legs.
Civil servants beware of PF hoodwinking you. There now you have your answer from BAZ . You still have to continue servicing your loan or else interest will pile up.
Who are the members of this Association? Bank managers, bank owners or bank employees?
Why issue contradictory statements when we saw them sign an agreement with other players?
BAZ is simply protecting the interest of its pay master.
I am PF but I should confess I belong to a very deceitful party, civil servants must check the timing of this strange offer, must as it may appear sweet, check the timing and make the right descision. Public broadcaster is showing them only, and somebody should come and say the elections were free and fair
What is there to moderate, on simple, straightforward and real issues
Civil servants just being hood winked
Dear reader this does not mean there won’t be debt swap they’re only clarifying their point here. For those of you who are speculating that your loans will be counseled. Terms and conditions are still intact. In an instance the government doesn’t pay for you they simply go after your individual account.
You saw them sign an agreement, but the lenders are not a charity and GRZ is being vague about who will ultimately pay……
GRZ are hoping to dupe the civil servant public just until elections day………..
This is just the horrible PF government trying to steal even more money than they already did. If you are a civil servant and are considering a loan, then DON’T – Edgar China Lungu will confiscate your cash and you will NEVER get it back! Don’t say you weren’t warned!
WE have told you that this Debt swap is a fallacy …I mean how can a civil servant default when the salary is deducted before he gets paid…the fact of the matter is this reckless govt has been deducting money and not paying the banks.
This govt really thinks civil servants are dumb…it just wants your votes that’s all
Why we fighting with each other ???
The writing is on the wall for this government
We Zambians have spoken
Change will come even with other tricks up the pf sleeve soon to be revealed I’m sure
This is contract between the individual borrower and the bank. PF have have no regard for the law and this is how they have behaved through out their misrule.
What is the objective of bailing out civil servants? I thought you bail out companies because you want to save jobs? What are they trying save here? What is the economic objective? This is just a Ponzi Scheme and a scam.
Only listen to official government sources. Between a government and a mere bank, who do you think has more authority? Muletontonkanya ba upnd diaspora.
Buying and selling a debt is normal. Banks have had debt swaps between individual account holders of other banks.
All loans have terms and conditions attached until new ones are enforced and repayment modalities are agreed by lenders and borrows and debt buyers.
Debt swap is real; so is government commitment too.
Kaiser Zulu supporting nonsense and you know this is a scam and there is no real objective being achieved here, Start using your gumption thick head.
Following
If there’s no payment freeze; PF just lost itself an election. It will certainly help HH gain the 13 000 votes he lost by last time.
I thought the HoS is a lawyer? Va mabwedebwede cabe all the time bati! Why is this government so inept? Do not injure your country beyond repair; there is just a few days left before we turnover the political scene. Ndipo muzaciona a mambala!
IS DIASPORA THE ONLY WORD THIS I*D*I*O*T TR000LL KNOWS
I would suggest that for those banks which will not head to the directive, let the government pay them, and ban them from being a receipt of public service workers salaries and transfer those already receiving salaries their banks to other Banks so that they lose customers.
Ndiwe chi pwisi
Normally when issues we don’t have much information on are brought out its better to wait and understand what they are all about. BAZ is not a part to the loan transaction between civil servants and banks. Its possible FNB can refuse this debt swap but Stanbic can accept. These are matters of strategic business decisions and not ilyashi lya pansaka where everyone can say whatever they want. Each lender will carryout their own risk assessement regarding this debt swap thereafter engage their board of directors for a business decision. There are factors surrounding this issue,e.g. if PF loses elections will UPND or whichever party wins elections honour this agreement? What security is government putting forward for the lenders? For sure this is a political campaign but debt relief is…
As much as this is a political campaign civil servants like everyone needs debt relief. This is the only thing government can do as they don’t capacity to print money like the USA is doing and paying those who were financially affected by Covid-19. A number of developed countries have been paying out citizens and bailing out companies. Coiuntries like Zambia too ought to find means of giving relief to citizens. This should have started last year for civil servants but knowing elections were coming PF had to exploit the opportunity which even UPND would have done the same if they were in government. Infact UPND promises a lot of social products than PF and its strange they are question a social program of debt swap.