The Bankers Association of Zambia-BAZ- has warned that any further delays to resolve the country’s debt situation by the second quarter of this year will exert extra pressure on the kwacha and inflation among other economic factors.
Association President Leonard Mwanza tells Phoenix News that much of how Zambia’s economy will shape up this year is hinged on resolving the debt situation quickly including ending load-shedding to restore productivity in the wake of the Russia/Ukraine war and the global recession.
And Mr. Mwanza has disclosed that the year 2022 was a satisfactory year for the banking sector as institutions maintained capital adequacy provisions, with asset quality at its second year best and profitability as at third quarter of the year showing improvement.
He attributes the satisfactory performance of the sector to fiscal stability, inflation being lower than 10 percent and a stable exchange rate until the year end pressures creeped in to depreciate the kwacha from around K16 to over K18 currently.
