Secretary to the Treasury Fredson Yamba said in a statement issued today that he hoped eligible beneficiaries such as orphans, widows, and other vulnerable persons, will be accorded special consideration during the process of payment.
Mr Yamba also stated that the ministry transferred the funds to ZSIC Life Limited, National Pension Scheme Authority (NAPSA), Mak Partners, and L.M. Matibini & Company which represented the said ex-employees.
“The Ministry of Finance is cognizant of the tight liquidity conditions that continue to impact on businesses and households in our country. As a country, we are also faced with reduced tax, and non-tax revenue inflows due to factors such as the COVID-19 induced economic slowdown. Even under such a difficult scenario, the Government remains committed to dismantling of arrears, prudent utilisation of resources, and implementation of fiscal consolidation measures,” Mr Yamba said. “The K30 million facility for the youth empowerment scheme announced by President EDGAR CHAGWA LUNGU on Thursday, coupled with among other facilities – the K10 billion medium term financing facility being managed by the Bank of Zambia, the K1 billion recently released for crop purchases by the Food Reserve Agency – and the US$29 million for implementation of the aquaculture seed fund under the Zambia Aquaculture Enterprise Development Project aimed at enhancing fish production for more than 3,000 entrepreneurs, are instances that demonstrate the Government’s commitment to mitigation of liquidity constraints in society.”
And Mr Yamba has revealed that government has started the process of acquiring the COVID-19 bond which was recently announced by President Edgar Lungu.
“Further, the COVID-19 bond resources will be available to support the small and medium enterprises that will not be able to access the K10 billion medium term refinancing facility managed by the Bank of Zambia through commercial banks (Out of K1.8 billion worth of applications received so far from the banking sector, K533 million has been approved by the Bank of Zambia. In addition, applications worth K753 million from the non-banking financial sector, are currently under consideration by the Bank of Zambia),” he said.
Mr Yamba disclosed that government was soliciting for support from various stakeholders, especially financial institutions and fund managers to raise the entire K8 Billion.
He said the move was going to be done in multiple tranches and that the Bank of Zambia Kwacha will be issuing the Bond on behalf of the government.
Mr Yamba further clarified that resources raised from the bond, which will be denominated in the Zambian will be specifically targeted towards local entities that have been affected by the impact of COVID-19.