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The financial sector has welcomed the proposed six
to 18 months placement of the country’s US$ 750 million sovereign bond with the
commercial bank sector.
Bankers Association of Zambia Chairman, Friday
Ndhlovu says the decision will help government re-coup some of the interest
charged on the respective loan.
The bankers have however cautioned that the money be
availed to them at commercial rates, so as not to keep the funds idle.
In a statement, the bankers have also advised that
the funds are invested in productive sectors of the economy, and disbursed only
through the commercial financial sector.
The Zambian government has proposed to hold the
huge sovereign bond funds with the commercial banks, before viable beneficiary
development projects are identified.
The country recently accessed the US$ 750 million funds
from the European and American financial markets, through a sovereign bond, at
an interest of 5.4 %, with a repayment period of 10 years.
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