REVEALED: Zambia’s most caring banks

BUUMBA CHIMBULU writes ZAMBIA’S most friendly commercial banks have made sure that their customers are helped to survive through the current storm caused by covid-19 (coronavirus) by offering them relief packages. While some are dilly dallying, these four commercial banks: Indo Zambia Bank (IZB), Absa Bank Zambia, ZANACO and Standard Chartered Bank, have launched a […]

REVEALED: Zambia’s most caring banks
BUUMBA CHIMBULU writes ZAMBIA’S most friendly commercial banks have made sure that their customers are helped to survive through the current storm caused by covid-19 (coronavirus) by offering them relief packages. While some are dilly dallying, these four commercial banks: Indo Zambia Bank (IZB), Absa Bank Zambia, ZANACO and Standard Chartered Bank, have launched a relief package campaign of offloading incentives for clients. The Commercial banks’ relief package campaign has been made possible with help from the Bank of Zambia (BoZ) who introduced the K10 billion facility meant to strengthen the financial sector resilience in the wake of covid-19. The facility is also meant to deal with the potential devastating impact for covid-19 on the domestic economy. IZB, Absa Bank Zambia, ZANACO, Absa Bank Zambia and Standard Chartered Bank have made sure that the measures put in place by the BoZ trickle down to customers standing in good book with commercial Banks. IZB, for example, launched two relief packages: one which will enable its customers, particularly those in key economic sectors defer their loan repayment for at least three months and it also waived all charges on its net banking facility. The Bank is able provide relief in form of restructuring loans and giving repayment deferments for an initial period of three months, said IZB’s Managing Director, Maheshkumar Bansal. Mr Bansal explained that particular attention would be given to customers in sectors that were prioritised in the Seventh National Development Plan such as agriculture, manufacturing, energy and tourism with special focus to the Small and Medium Enterprises (SMEs). ZANACO also launched financial package reliefs which seek to ensure that its customers’ cash flows are cushioned in the medium term by extending loan repayment holidays among others. Zanaco Acing Chief Executive Officer, Lishala Situmbeko, said the relief options would include the extension of loan tenures, refinancing of loans and loan repayment holidays. Mr Situmbeko said the relief would be available to the Bank’s personal, business banking and corporate customers who had been existing loan facilities. “The impact that the COVID-19 pandemic has had on individuals and businesses cannot be ignored and it calls for all of us to be supportive of each other. “As a Bank, we recognise the need to support our customers at a time like this, because it is not business as usual,” he said. Absa Bank Zambia PLC Managing Director, Mizinga Melu, said her institution recognised that the financial wellbeing of some of its individual customers and businesses may have been adversely affected during this time. Ms Melu said this package which included a three-month payment relief among other payment relief solutions was one way of helping bring possibilities to life for its customers. “Absa Bank Zambia PLC is committed to helping customers during this period of anxiety and hardship. While this relief package is for an initial three month period, the Bank will review its program should macroeconomic conditions deteriorate further,” Ms Melu added. Standard Chartered Bank’s Head of Retail Banking, DeepPal Singh, said relief measures included payment holidays of up to three months or tenor extension of up to 12 months for business loans. Mr Singh said for personal loans, the Bank was offering payment holiday of up to three months or loan tenor extension of up to 12 months for personal loans. “Standard Chartered Bank recognises that the current Covid-19 pandemic will pose challenges for some of our clients’ ability to repay their loans, mortgages and credit cards,” he said. Meanwhile, BoZ Governor, Denny Kalyalya, warned commercial banks not to invest the K10 billion relief package on Government paper as the money was meant for lending to eligible clients and businesses. Dr Kalyalya stressed that this money was for lending to eligible clients, businesses and Small and Medium Entrepreneurs (SMEs) and not for investing in Government paper such as treasury bills. “We shall have a very rigid monitoring regime to ensure the money is put to proper use. The idea is that we have to manage the pandemic and also create an empowerment for post COVID-19 recovery. “This facility is not meant for banks or financial institutions to hold the money and then buy Government paper. That will not be allowed. This has to be released on the basis of providing creditable on lending programme,” Dr Kalyalya said. The Sun