CBN Extends Relief On Loans By 12 Months

By Fola James

The Godwin Emefiele-led Central Bank of Nigeria, CBN has extended the discounted interest rate for its intervention facilities for another 12 months. The apex bank, however said the one year extension will be considered on case by case basis.

Recall that the apex bank, last year, granted a 12 months extension for all its intervention funds, citing the need to cushion the effects of the corona virus pandemic on the economy.

According to a circular titled ‘Re: Regulatory forbearance for the restructuring of credit facilities of other financial institutions impacted by COVID-19,’ and obtained by the magazine, the government bank said the action was taken to mitigate the impacts of the COVID 19 on the economy.

It reads, “The Central Bank of Nigeria reduced the interest rates on the CBN intervention facilities from nine per cent to five per cent per annum for one year effective March 1, 2020, as part of measures to mitigate the negative impact of COVID-19 pandemic on the Nigerian economy.

“Credit facilities, availed through participating banks and OFIs, were also granted a one-year moratorium on all principal payments with effect from March 1, 2020. Following the expiration of the above timelines, the CBN hereby approves as follows:

“The extension by another 12 months to February 28, 2022 of the discounted interest rate for the CBN intervention facilities.The role-over of the moratorium on the above facilities shall be considered on a case by case basis.”