The Central Bank of Nigeria, CBN, has suspended applications
for new loans under its development finance intervention funds. Also, banks are
now responsible for recovering those already granted.
The apex bank announced this decision in a circular to the
Chief Executive of banks, signed by Acting Director, Development Finance
Department, Sa’ad Hamidu.
Among other things, the CBN said it had commenced pullback
from direct development financing interventions. CBN added that the banks are
now responsible for the recovery of loans granted so far under the development
finance intervention funds.
The circular is titled “Suspension of Acceptance of New
Applications under the Existing Central Bank of Nigeria, CBN Development
Finance Intervention Programme”.
CBN said: “In furtherance of the Central Bank of Nigeria’s
(CBN) new policy thrust focusing on its core mandate of ensuring price and
monetary stability, the Bank has commenced its pullback from direct development
financing interventions.
“Accordingly, the CBN would be moving into more limited
policy advisory roles that support economic growth.
“In consideration of the above, the CBN wishes to inform you
that it has stopped accepting new loans applications for processing under any
of its existing intervention programmes and schemes.
“It is important that you communicate this to your
customers. And kindly note that the interest rates, as well as other terms and
conditions on all existing facilities, remain as contained therein in their
respective approval letters.
“You may also wish to note that your bank shall be
responsible for the recovery of the outstanding balance on all facilities
previously accessed through your bank.”
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