CBN Restructures Loans, Grants Another 12-month Extension

The Central Bank of Nigeria has given another 12-month extension on the discounted interest rate for its intervention facilities.

It said that the role-over of the moratorium on the facilities would be considered on a case by case basis

It disclosed this in a circular on Wednesday to all banks and other financial institutions titled ‘Re: Regulatory forbearance for the restructuring of credit facilities of other financial institutions impacted by COVID-19’.

The circular was signed by the Director, Financial Policy and Regulation Department, Kelvin Amugo.

The circular read, “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.”

It would be recalled that in 2020, the CBN granted a one-year moratorium on all of its intervention funds, as part of efforts to cushion the COVID-19 impact in the country.