THE K10 billion Targeted Medium Term Refinancing Facility (TMTRF) review is currently underway to determine its effectiveness on businesses and households, as the Central Bank considers other supportive mechanisms to drive economic stability.
Bank of Zambia (BoZ) Governor Denny Kalyalya says the TMTRF, which was set up to assist households and businesses affected by the impact of Covid-19 pandemic was being reviewed.
Dr Kalyalya states that the central bank is keenly monitoring developments arising from the war between Ukraine and Russia to ensure appropriate intervening mechanisms such as the TMTRF can be put in place should there be need.
In an interview in Lusaka recently, Dr Kalyalya explained that BoZ was reviewing the whole process on what worked and what did not just in case there was need to do a similar operation in future.
“We had more applications as prepared for but it came to an end and we are not reviewing the whole process on what went well and what did not go well just in similar operation in future we will know what measures to take.
“It did help a lot for those who accessed it, it helped with liquidity and it also helped stabilise the market which was one of the critical objectives which was financial stability. So we are happy that it was disbursed,” he said.
Dr Kalyalya stated that BoZ was happy that it worked, despite not fully meeting all the needs of the clients.
He however said that was expected from the beginning and hoped that BOZ could move on to see how it could move the economy forward using other supportive mechanisms.
Asked on a possible second phase of the TMTRF due to Russia war, Dr Kalyalya said the central bank was closely monitoring the situation.
“We are continually reviewing the situation. As of now it is not presenting itself in the same way that COVID-19 had presented but this is an ongoing process of monitoring the economy.
“But that kind of a facility clearly earmarked for the crisis that we had, so if we reach that level which we hope we do not, we will consider other mechanisms of intervening in the economy,” he said.
In April 2020, the central bank put in place the K10 billion TMTRF to assist with liquidity to businesses and individuals during the COVID-19 period.
