Africa-Press – Zambia. 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
