The Government of Malawi through the Ministry of Finance, Economic Planning and Development has with immediate effect stopped the issuance of Zero Coupon Promissory Notes, ZCPNs, to its creditors and claimants.
A promissory note is the one that pays at maturity the value of the note with no separate interest payments, the effective interest arising from the discounted purchase price.
This means all arrears and claims will be processed through the national budget.
A statement signed by the Secretary to the Treasury, Ben Botolo, indicates that all zero coupon promissory notes issued to date will be honored by the government as and when due.
The ministry has however articulated that it remains committed to private sector development which is the engine for spurring economic growth and reducing poverty in the country.