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Business News of Wednesday, 11 August 2021

Source: www.mynigeria.com

CBN unveils guidelines for regulation of CGCs

The Central Bank of Nigeria The Central Bank of Nigeria

The Central Bank of Nigeria has released guidelines for registration and supervision of Credit Guarantee Companies (CGCs) in the country.

They were released by the body (CBN) on Tuesday, August 10, 2021.

The guidelines are contained in a circular signed by Ibrahim Tukur, CBN’s Director, Financial Policy and Regulation Department and addressed to commercial banks, Other Financial Institutions and stakeholders in the financial services industry.

According to Tukur, the guidelines were in furtherance of the effort to improve lending for Micro, Small and Medium Enterprises.

He said that the guidelines seek to ultimately reduce credit risk, stimulate lower interest rates on loans and complement other initiatives of regulatory authorities aimed at stimulating lending to MSMEs.

“An exposure draft of the guidelines is hereby issued for comments and observations. The document may be obtained from the CBN’s website, www.cbn.gov.ng," the director said.

He encouraged stakeholders to send their comments and observations on the guidelines within three weeks.