The Central Bank of Nigeria (CBN) has reduced interest rates
on its facilities through participating Other Financial Institutions (OFIs).
The rate has been slashed from 9 to 5 percent per for one
year, effective March 1, 2020.
This was contained in a circular to banks on Wednesday by the
Director of Financial Policy and Regulation Department, Kevin Amugo.
Similarly, CBN intervention facilities obtained through
participating OFIs, Microfinance Banks (MFBs), Primary Mortgage Banks, among
others would be given a further one-year moratorium on all principal
repayments.
This is also effective March 1, 2020.
OFIs have equally been granted leave to consider temporary
and time limited restructuring of the tenor and loan terms for households and
businesses, subject to the recently issued guidelines for restructuring
affected credit facilities in the OFI sub-sector.
The Director, Corporate Communications Department, Isaac
Okoroafor, said the decisions were part of the bank’s efforts to cushion the
effects of coronavirus on Nigerians, businesses and regulated institutions.
He assured that the CBN would also continue to monitor
developments and implement appropriate measures to safeguard financial
stability and support stakeholders impacted by the COVID-19 pandemic.
However, the Monetary Policy Committee (MPC) meeting of the
CBN for the month of May will be held on Thursday.
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