Loans contracted under PMEC remain active and Serviced by Government-BAZ

  Loans contracted under PMEC remain active and Serviced by Government-BAZ

By IREEN MULENGA
The Bankers Association of Zambia (BAZ) says that all loans contracted under the payroll Management Establishment Control (PMEC) shall remain active and serviced by the Government.

BAZ Chief Executive Officer Leonard Mwanza said the association noted the intention of the Government and representative of the public service workers union, to provide relief to public service workers under the debt swap initiative.

“We wish to advise the public service workers with existing loans obtained from Commercial Bank and other learning institutions, that the existing terms and conditions under which these loans were contracted are still in force,” he said.

Mr  Mwanza said that  the all loans contracted by public service workers through bilateral agreements with commercial Bank and other Financial institutions remain active and Serviced through direct debit orders in individual account banks as contained in the exiting loan agreements.

He said the Association awaits further guidance from Government on the ongoing reconciliations and the debt buy back mechanisms.