The Banking sector is happy with Government for signing a staff level agreement with the International Monetary fund (IMF), saying the move will enable Banks to scale up lending facilities to customers.
ABSA Bank Managing Director, Mizinga Melu said the staff level agreement between the Zambian government and IMF to restructure credit extended facility of paying back loans for a longer period of time.
Speaking in an interview with ZANIS in Lusaka, Ms. Melu explained that the new loan facility payment plan will restore the economic stability and an all-inclusive economic recovery.
“With the signing of this staff level agreement, definitely stakeholders will start flocking to the Banks to access loans to grow their various businesses,” she said.
The ABSA Managing Director, who is also Bankers Association of Zambia president has praised the New Dawn administration for speedily engaging the IMF to restructure debt payment for Zambia.
She said signing of the staff level agreement with IMF in itself is a positive move and has brought more confidence to the market and seen more banks are expending more credits to stakeholders in the country.
She said the policies of the new administration will spur economic growth as many players will be involved in the market due to a conducive environment in terms of lending rates.
Ms. Melu added that the signing of a staff level agreement will translate in the growth of the economy from last year’s 3.3 percent to 3.5 in the fiscal year 2022.
She said that following the signing of staff level, the government must in the next few months start engaging a number of creditors in the country to restructure the facility and accord borrowers a chance to borrow.
In his Budget speech presentation to Parliament in October last year, Finance Minister Situmbeko Musokotwane announced that government projects to grow the economy to 3.5 percent in 2022.
She said the only and fastest way to spur economic development in the country is through banks lending money to clients in order for them to exploit the agriculture and other sectors of the economy.