The Central Bank of Nigeria has approved moratoriums on CBN facilities managed by Other Financial Institutions (OFIs). It reduced the interest rates on these facilities from 9% to 5% for a year, effective from March 1, 2020.

The CBN also allowed OFIs to restructure payment plans and grant moratoriums on principal payments from the same date. The Bank of Industry, which is an OFI, had already reduced interest rates and granted moratoriums on some of its credit facilities in April.

”CBN intervention facilities obtained through participating OFIs – Microfinance Banks (MFBs), Primary Mortgage Banks, and Institutions, among others – will be given a further one-year moratorium on all principal repayments, also effective March 1, 2020.”

CBN said the move was aimed at reducing the impact of coronavirus on household businesses and regulated institutions in the country.

The CBN has also granted OFIs leave to consider temporary and time-limited restructuring of the tenor and loan terms for households and businesses affected by COVID-19, subject to the recently issued guidelines for restructuring affected credit facilities in the OFI sub-sector,” the bank said.

The Director, Corporate Communications Department, Isaac Okorafor, said the approval for the restructuring of loans in the Other Financial Institutions (OFI) sub-sector was part of the bank’s commitment to alleviating the burden induced by the lockdown on households, businesses and regulated institutions.

Okaroafor added that the bank would continue in its effort to closely follow, “developments and implement appropriate measures to safeguard financial stability and support stakeholders impacted by the COVID-19 pandemic

SOURCE:https://brandspurng.com/2020/05/30/cbn-approves-relief-on-ofi-loans/

Let the Heist Professor manage this CBN for just one week; he knows where to direct liquidations to -not the rich getting richer- to improve the economy.