CBN extends discounted interest rate for its intervention facilities by 1yr - BUSINESSDAY
...asks banks, OFIs to restructure loans on case-by-case basis
BY Hope Ashike
The Central Bank of Nigeria (CBN) on Wednesday extended the discounted interest rate for its intervention facilities by another 12 months to February 28, 2022.
In a circular to all banks and other financial institutions (OFIs), signed by Kevin Amugo, director, financial policy and regulation department, the CBN said the rollover of the moratorium on loans granted through banks and OFIs shall be considered on a case by case basis.
On March 1, 2020, the CBN reduced the interest rates on its intervention funds from 9 percent to 5 percent per annum for one year period.
The reduction was part of measures to mitigate the negative impact of Covid-19 pandemic on the Nigerian economy.
Also credit facilities availed through participating banks and OFIs were granted a one-year moratorium on all principal payments with effect from March 1, 2020.
BusinessDay reported five days ago that Monetary Policy Committee (MPC) members wanted the CBN to extend loan forbearance by 12 months.
“I am supportive of extending this forbearance by an additional twelve months, which would enable Deposit Money Banks (DMBs) to continue providing reprieve to households and businesses through lower interest rates and repayment moratoriums,” Kingsley Obiora Isitua, MPC member, said in a personal statement.