The Central Bank of Nigeria has extended the discounted interest rate for its intervention facilities to financial institutions to mitigate the negative impact of the Coronavirus Disease on Nigerian economy.
The apex bank, in a circular signed by its Director of Financial Policy and Regulation Department, Kevin Amugo, on Wednesday, stated, “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 roll-over of the moratorium on the above facilities shall be considered on a case by case basis.”
According to the circular entitled ‘Re: Regulatory Forbearance for the Restructuring of Credit Facilities of other Financial Institutions Impacted by COVID-19,’ the decision followed the expiration of the timeline the bank approved last year.
“The CBN reduced the interest rates on the CBN intervention facilities from nine per cent to five per cent yearly for one-year effective March 1, 2020, as part of measures to mitigate the negative impact of COVID-19 on the Nigerian economy.
“Credit facilities, availed through participating banks and Other Financial Institutions, were also granted a one-year moratorium on all principal payments with effect from March 1, 2020,” it added.
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