CBN restructures credit facilities of Other Financial Institutions impacted by Covid-19

The Central Bank of Nigeria has further restructured the credit intervention facilities of other financial institutions impacted by the Covid-19 pandemic for another 12 months. It will be recalled that at the onset of the pandemic in March 2020, the CBN had, in consideration of the negative impact of the pandemic on the economy and on other financial institutions, granted a one year moratorium on all principal payments for one year effective March 1, 2021 on the intervention facilities extended to the banks. It had also reduced the interest rate on the intervention facilities from 9% to 5% per annum. Following the expiration of the timeline, the CBN in a circular (Regulatory Forbearance for the Restructuring of Credit Facilities of Other Financial Institutions Impacted by Covid-19) dated March 3, 2020 and addressed to all banks and other financial institutions stated the extension of the moratorium for another 12 months to February 28, 2022, of the discounted interest rate for the CBN intervention facilities. It further stated that the rollover of the moratorium on the facilities shall be considered on a case by case basis. You can read the circular here REGULATORY FORBEARANCE FOR THE RESTRUCTURING OF CREDIT FACILITIES OF OTHER FINANCIAL INSTITUTIONS IMPACTED BY COVID-19