Regulatory Alerts2021-03-03 | FPR/DIR/PUB/CIR/01/001Re: Regulatory Forbearance for the Restructuring of Credit Facilities of Other Financial Institutions Impacted by Covid-19
The Central Bank of Nigeria reduced interest rates on intervention facilities from 9% to 5% annually and granted a one-year moratorium on principal payments to mitigate the economic impact of the COVID-19 pandemic. Following the expiration of these measures, the CBN has extended the discounted interest rate for another year and will consider moratorium roll-overs on a case-by-case basis. These decisions aim to provide continued financial relief to banks and other financial institutions impacted by the pandemic.
CENTRAL BANK OF NIGERI Financial Policy and Regulation Department Central Business District P.M.B. 0187 Garki, Abuja.
Tel: 09-46237401 E-mail:fprd@cbn.gov.ng FPR/DIR/PUB/CIR/01/001 March 3, 2021 CIRCULAR TO ALL BANKS AND OTHER FINANCIAL INSTITUTIONS (OFIs) RE: REGULATORY FORBEARANCE FOR THE RESTRUCTURING OF CREDIT FACILITIES OF OTHER FINANCIAL INSTITUTIONS IMPACTED BY COVID-19 The Central Bank of Nigeria reduced the interest rates on the CBN intervention facilities from 9% to 5% per annum for one-year effective March 1, 2020, as part of measures to mitigate the negative impact of COVID-19 Pandemic on the Nigerian economy. Credit facilities, availed through participating banks and OFIs, were also granted a one-year moratorium on all principal payments with effect from March 1, 2020. Following the expiration of the above timelines, the CBN hereby approves as follows:
- The extension by another twelve (12) months to February 28, 2022 of the discounted interest rate for the CBN intervention facilities; 2) The roll-over of the moratorium on the above facilities shall be considered on a case by case basis.
Further enquiries on the provisions of this Circular may be addressed to the Director, Development Finance Department.
KEVIN AMUGO, PhD DIRECTOR, FINANCIAL POLICY AND REGULATION DEPARTMENT