Regulatory Alerts2012-05-18 | TED.FEM.FPC.GEM.01.013.2012Foreign Loan Repayment From The Nigerian Foreign Exchange Market
The Central Bank of Nigeria's Trade & Exchange Department has issued a circular outlining guidelines for repayment and interest payment on foreign loans. Effective immediately, loans taken for raw materials, plant, or machinery will be funded from the WDAS. For other purposes, repayments should come from the inter-bank market, and ancillary loan charges must also use inter-bank funds. All transactions must be supported by relevant documentation to avoid sanctions.
ENTRAL BANK OF NIGERIA Corporate Head Office Central Business District P.M.B. 0187, Garki. Abuja, FCT TRADE & EXCHANGE DEPARTMENT Tel ...................
09 46237802 09-46237804 Fax : .........
E-mail address: ted@cbn.gov.ng TED/FEM/FPC/GEN/01/013 May 18, 2012 TO: ALL AUTHORIZED DEALERS AND THE GENERAL PUBLIC FOREIGN LOAN REPAYMENT FROM THE NIGERIAN FOREIGN EXCHANGE MARKET This to inform all Authorized Dealers and the general public that from the date of this circular, the following guidelines shall apply to foreign loan repayment and interest payment:
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Repayment of principal and interest payment on loan contracted for the purpose of Raw Materials, Plant and Machinery can be funded from the WDAS.
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For a foreign loan that is not for the purposes stated in (1) above, funds for its repayment and interest payment shall be sourced from the inter-bank market.
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Ancillary charges arising from contracting foreign loans shall be paid with inter-bank funds.
In all cases, the Authorized Dealer shall ensure that the transactions are supported with CCI and other relevant documentation before effecting remittance.
Please be guided and ensure compliance accordingly, failing which appropriate sanctions shall apply.
DIRECTOR TRADE & EXCHANGE DEPARTMENT