Regulatory Alerts2020-04-09
Directive No. 0025 Governing the Extended Lending Facility to Banks
The National Bank of Rwanda issued Directive No. 0025 to establish the operational framework and eligibility criteria for its COVID-19 Extended Lending Facility, which provides targeted liquidity support to banks experiencing transitory distress. The directive mandates a streamlined application and approval process, sets facility tenors between three and twelve months, and applies an interest rate fixed at the Central Bank Rate. Beneficiary banks must pledge unencumbered collateral, face dividend restrictions until full repayment, and incur daily penalties up to 50 basis points for default, with automatic collateral liquidation if settlement is delayed beyond fifteen days.
Share