Regulatory Alerts2008-10-03 | TED-FEM-FPC-GEN-01-106-08Circular to all Banks on Offshore Expansion
The Central Bank of Nigeria (CBN) has issued a circular allowing banks to reschedule specific debts for up to a year, extending the duration from the initial period they were structured. This decision is based on section 2.3 of the Prudential Guidelines and applies specifically to loans made for purchasing shares in the Nigerian Stock Exchange. The forbearance aims to address recent requests by several banks to restructure their capital market-related exposures.
09-61636403 09-61636418 October 2, 2008 BSD/DIR/CIR/GEN/VOL.2/010 CIRCULAR TO BANKS RE SCHEDULING OF SPECIFIC DEBTS Several banks have recently indicated their desire to reschedule some of their capital market related exposures. Their desire was informed by the strict consideration of section 2.3 of the Prudential Guidelines which provides the grounds for reclassifying non-performing facilities. Given that the facilities should have been structured for a much longer period from the beginning, the CBN is, by this circular allowing such facilities to be restructured for a longer period between now and December 31, 2009. It should be NOTED that the forbearance is specifically for only loans made for the purchase of shares in the Nigerian Stock Exchange.
O. I. IMALA DIRECTOR OF BANKING SUPERVISION