GVT RELEASES K255 MILLION TO EFFECT DEBT SWAP
Written by MillenniumEditor2 on July 22, 2021
The Treasury has released over K255 million funding to clear the third party obligation to commercial banks and micro-finance institutions.
Ministry of Finance Accountant General Kennedy Musonda says K55.3 million funding will go to the commercial banks while K200 million will be paid to micro-finance institutions for the months of March and April 2021.
Mr. Musonda said this during a virtual meeting with commercial banks and other financial institutions to liaise on the implementation of the Civil Service debt swap initiative which was also attended by Permanent Secretary Public Service Management Division (PSMD) Boniface Chimbwali, and Permanent Secretary Information and Broadcasting Services Amos Malupenga
Mr Musonda said the data reconciliation exercise for the civil service debt swap initiative would take 3 months with effect from July 2021.
He told the online meeting that in the intervening period, the Government would not make any loan related deductions from Civil Servants’ salaries until the exercise is completed.
The Accountant General also took the opportunity to instruct banks and lending institutions to, henceforth, not extend salary backed loans to civil servants until the reconciliation process is concluded.