Zigama Credit and Savings Society (Zigama CSS) has waived the payment of the principal amount that borrowers were meant to pay in March in order to soften the economic impact of coronavirus on its clients.

However, borrowers will still pay the interest rate for the month of March.

According to officials, the Bank may extend its loan payment relief beyond March, if the coronavirus pandemic persists.

Lieutenant Colonel Innocent Munyengango, the Rwanda Defence Force (RDF) Spokesperson, said the move aims to facilitate the social welfare of Zigama CSS members. The relief applies to all loan products.  

Munyengango said that the Bank is in a sound financial position, which allows it to ease loan repayment processes for its customers.

Zigama CSS reported a profit of over Rwf10 billion for 2019. The Bank’s profits have been growing at 20 per cent since 2017, its management said during a General Assembly last year.

The Bank serves security institutions including Rwanda Defence Force (RDF), Rwanda National Police (RNP), Rwanda Investigation Bureau (RIB), Rwanda Forensic Laboratory (RFL), National Intelligence and Security Service (NISS) and Rwanda Correctional Services (RCS),

It targets to grow its asset base to $1 billion by 2023, up from $280 million in 2018.

Zigama’s relief to its borrowers comes after the National Bank of Rwanda announced a raft of measures to limit the impact of the coronavirus outbreak on the economy.

In addition to announcing Rwf50 billion stimulus to bolster private sector lending, the central bank also encouraged commercial banks to ease the loan repayment process for distressed borrowers due the COVID-19 outbreak.