Stanbic Bank Zambia Limited announced here Wednesday that it will reduce its interest rate from 25 percent to 19 percent beginning on May 2, 2006.

Bank Managing Director Larry Kalala said the development is aimed at ensuring the cost of borrowing is affordable.

He said the bank has noted the improvements recorded in Zambian economy and is confident that with the increasing copper prices in the international market, the economy of the copper-producing country will grow even further.

He said, in anticipation of this growth, the bank will contribute by providing loans for investment in the economy.

The bank has set aside over 100 billion kwacha (31.25 million U. S. dollars) for loans, he said.

Zambian central bank has been urging banks in the country to reduce their interest rates to make their loans more affordable to promote the country's economy.

Source: Xinhua