AfricaPress-Tanzania: BANK of Tanzania (BoT) is set to offer special packages for the financial sector in a bid to stabilize the sector and maintain monetary stability following the coronavirus outbreak.
It is part of Central Bank’s contingent plan to cushion the economy from what is expected to be a severe blow from the coronavirus outbreak.
BoT’s Macro-prudential Analysis and Crisis Management Manager, Dr Deogratias Assey, said the central bank was weighing bailouts to help the virus created a monetary crisis.
“The central bank has already formulated some stimulus packages to assist banks in case the virus brings financial crisis to the economy,” Dr Assey told a tripartite team— Ministry of Health, Community Development, Gender and Elderly, Tanzania Bankers Association (TBA) members and BoT on Thursday.
“The packages are designed to cushion and stimulate the financial sector to reduce impact of the contagious effect of coronavirus,” he added.
The BoT commended efforts by banks on preventing more outbreaks by encouraging customers to wash hands and sanitizing ATMs.
The Deputy Minister for Health, Community Development, Gender, Elderly and Children Dr Faustine Ndugulile, said the government has put in place strategies to combat more infections and people should adhere to protective directives issued by the ministry.
“People should not panic. What they need to do is to put into practice the directives issued by the ministry,” Dr Ndugulile stressed.
During the meeting, various representatives from banks informed the regulators on strategies put forward to halt further spread of the deadly Covid-19.
TBA Deputy Chair, Mr Sanjay Rughani prayed to the government to make sure institutions such as Tanesco and others that are supporting digital banking platforms are working efficiently this time around to enable customers to have access to financial services without visiting a branch.
Globally, European Central Bank came up with a Pandemic Emergency Purchase Programme aimed at keeping borrowing costs down to support the outlook for Europe’s economy and making sure the bank’s low benchmark rates keep getting through to businesses and consumers.
The US Fed on Sunday slashed its benchmark interest rate to near zero and said it would buy 700 billion US dollars in Treasury and mortgage bonds.
