By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has given a one-year moratorium on all principal repayments for COVID-19 intervention loans through its participating Other Financial Institutions (OFIs).
This took effect from March 1, 2020, a circular signed by the Director, Financial Policy and Regulation Department, Mr Kevin Amugo, on Wednesday, stated.
It also stated that as part of its continued efforts to mitigate the impact of coronavirus on households, businesses and regulated institutions, interest rate on its facilities through the participating OFIs has been reduced from nine percent to five percent per annum for one year effective March 1, 2020.
“The CBN intervention facilities obtained through participating OFIs will be given a further one-year moratorium on all principal repayments, also effective March 1, 2020,” it stated.
“Interest rates on the CBN intervention facilities through participating OFIs is hereby reduced from 9 percent to 5 percent per annum for one-year effective March 1, 2020,” the central bank added.
According to the circular, the OFIs have also been granted leave to consider temporary and time-limited restructuring of the tenor and loan terms for households and businesses affected by COVID-19, subject to the recently issued guidelines for restructuring affected credit facilities in the OFI subsector.
The Director, Corporate Communications Department at the CBN, Mr Isaac Okorafor, said the management’s approval for the restructuring of credit facilities in the OFI subsector was in line with the bank’s plans to cushion the effect of the lockdown on households, businesses and regulated institutions.
He explained that the CBN would also continue to monitor developments and implement appropriate measures to ensure financial stability and support stakeholders impacted by the COVID-19 pandemic.
