In particular, lower interest rate levels help reduce losses on credit portfolios, thanks to the favourable effect they have on borrowers’ ability to repay their loans, associated both with lower loan costs and with the higher income and lower unemployment levels linked to the positive macroeconomic impact of lower interest rates. These effects have been especially significant in countries such as Spain where the banking system had a high level of non-performing loans and where short-term and variable rate lending predominates, since this means that changes in market yields are rapidly passed through to the cost of outstanding debt. This effect thus explains part of the decline in the NPL ratio in recent years. In addition, lower interest rates help drive up the prices of financial and real assets. This effect is immediate in the case of debt securities, especially long-term ones, as their prices are more sensitive to yield changes. The prices of equities and real assets, such as housing, are also boosted by lower interest rates, owing to their effect on the discount factor, although these prices are also affected by other factors, such as macroeconomic expectations. All this entails capital gains for banks exposed to these financial and real assets. It also increases the value of loan collateral, which enhances the credit quality of loans and, therefore, reduces losses on the credit portfolio. That said, it is true that these capital gains become exhausted once interest rates cease to decline and remain at low levels.
The events range from small random informal gatherings to large-scale highly organised events to celebrate women’s advancement while highlighting the need for continued vigilance and action. A good number of Governments around the world, have made commitments to promote gender equality, by among other things, taking initiatives to integrate gender perspectives into national budgets or development plans in order to reflect the differentiated needs of women and men. Zambia is no exception. In Zambia, it is recognised that the creation of the Ministry of Gender and Women in Development, is a deliberate effort by the Government to ensure that the needs of women are addressed. Through the Ministry we are able to recognise the strides that have been made by women in national development and we look ahead to the challenges that are before us as we strive to achieve our goal of gender equality. In addition, Zambia is a signatory to the SADC Declaration on Gender and Development. This declaration calls for the equal representation of women and men in the decision making process of member states at all levels. I must concede here that, although we have made significant strides as a country in women representation, more still needs to be done. We are however encouraged that there are a good number of women with potential and ability to rise above any form of challenge.