EXISTING TERMS AND CONDITIONS FOR CIVIL SERVANTS’ LOANS STILL IN FORCE DESPITE DEBT SWAP
The Bankers Association of Zambia –BAZ- is advising 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.
This follows the announcement by Government and representatives of Public Service Workers’ union to provide relief to public service workers under the debt swap initiative.
In a statement, BAZ Chief Executive Officer, Leonard Mwanza explains that in this regard, all loans contracted under the Payroll Management and Establishment Control –PMEC- shall remain active and serviced by government.
Mr. Mwanza further said 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.
He said the Association is still awaiting further guidance from government in the ongoing reconciliations and the debt-buy bank mechanisms.
Source PHOENIX NEWS