For the first time in several years, the Central Bank of Nigeria (CBN) says it has reduced interest rates on all its intervention facilities from 9 percent to 5 percent per annum for one year effective March 1, 2020.
Other policy measures include the provision of N50 billion credit facility for households and small and medium scale enterprises (SMEs), the extension of the moratorium before payment of principal on its intervention funds by one year.
“The N50 billion targeted credit facility is going to be disbursed through NIRSAL Microfinance Bank for households and SMEs that have been particularly hard hit by the coronavirus disease including but not limited to airline service providers, healthcare merchants, hoteliers and so on.
“In addition, CBN will provide credit support to the health industry in the form of loans to hospitals, health care practitioners and pharmaceutical companies,” he assured.
Also, the apex bank has granted all deposit money banks (DMB) leave to consider temporary and time-limited restructuring of the tenor and loan terms for businesses and households most affected by the outbreak of Covid-19 particularly oil and gas, agriculture, and manufacturing.
“The CBN would work closely with DMBs to ensure that the use of this forbearance is targeted, transparent and temporary, whilst maintaining individual DMB’s financial strength and overall financial stability of the system,” Emefiele said.
It will also extend intervention facilities and loans to pharmaceutical companies intending to expand/open their drug manufacturing plants in Nigeria, as well as to hospital and healthcare practitioners who intend to expand/build the health facilities to first-class centres.
He said the bank would also strengthen and sustain its loan to deposit ratio (LDR) policy in view of the success of the policy in growing credit to the economy and reducing interest rates.
Emefiele promised that CBN said would continue to monitor developments with a view to issuing further directives and interventions.
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