Rule · CBN · 3 Oct 2008 · BSD/DIR/CIR/GEN/VOL.2/014

Rescheduling of Specific Debts

This circular by the Central Bank of Nigeria (CBN) allows banks to reschedule certain capital market-related exposures until December 31, 2009. The forbearance is specifically for loans made for purchasing shares on the Nigerian Stock Exchange, based on section 2.3 of the Prudential Guidelines that permits reclassifying non-performing facilities when they are structured for a longer period. This decision was made due to banks expressing their intent to reschedule some exposures considering this guideline.

NigeriaCentral Bank of Nigeria

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

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