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Business News of Monday, 16 March 2020

Source: www.mynigeria.com

CBN cuts interest rates on intervention facilities to 5%

CBN Governor, Godwin Emefiele CBN Governor, Godwin Emefiele

In line with the six policy responses to combat the Covid-19 scourge on the economy, the Central Bank of Nigeria pledged to support household, businesses, other stakeholders to cushion the economic impact of the deadly virus.

The Apex bank promised to grant a one-year moratorium on all principal repayments on all CBN intervention facilities. It directed participating financial institutions to provide new amortization schedules for all beneficiaries of CBN intervention facilities.

It also reduced interest rates on all applicable CBN intervention facilities from 9% to 5% per annum with effect from March 1, 2020.

It promised to partner with the NIRSAL Microfinance Bank to create credit facilities for households and small and medium-sized enterprises (SMEs) hit by COVID19.

Promising to respond to the economic impact of coronavirus, it itemized the following thought plans:

"CBN announces intervention loans to pharmaceutical companies planning to expand or open drug manufacturing plants in Nigeria

"CBN okays intervention facilities to hospitals and healthcare practitioners who plan to build health facilities or expand existing facilities to first class centres

"CBN grants Deposit Money Banks (DMBs) leave to consider temporary and time-limited restructuring of tenor and loan terms for businesses in oil and gas, agriculture, manufacturing and households affected by the outbreak of COVID-19

"CBN Gov, Emefiele pledges CBN support for industry funding levels to maintain the capacity of DMBs to direct credit to individuals

"Emefiele urges DMBs to continue to build capital buffers to improve resilience of the sector," the statement read in part.

It promised to issue further updates on the Bank’s response to the impact of the virus.