Africa Financial Sector Responses to COVID-19 - Tanzania

Jul 29, 2020

 

This page presents measures and initiatives by the Tanzanian government, national central bank and Development Finance Institutions (DFIs) in support of a resilient domestic financial sector facing the effects of the COVID-19 pandemic.

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Instrument

Institution

Financing volume

Description 

Loan rates

Tanzania agricultural development bank (TADB)

N/A

(June 11, 2020) TADB has lowered interest rates on loans given to cooperative societies from 12% to 9% to relieve farmers of loan repayment burden.

Monetary Policy

Bank of Tanzania

N/A

(May 12, 2020) The Bank of Tanzania (the BoT) has taken steps to introduce policy measures to safeguard the stability of the financial sector.
* The Federal council has lowered the Statutory minimum reserves (SMR) requirement from 7% to 6%;
* In anticipation that banks may require additional funding from the BoT in light of COVID-19, the BoT has reduced the discount rate from 7% to 5%;
* Reduced haircut on government securities from 10% to 5% for treasury bills and from 40% to 20% for treasury bonds;
*Provide regulatory flexibility to banks and other financial institutions that will carry out loan restructuring in a transparent and impartial manner;
* Recommend to mobile money operators to increase daily transaction limit to customers.

 


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