Home BUSINESS BANKING & FINANCE CBN Reduces Interest Rates On Other Financial Institutions

CBN Reduces Interest Rates On Other Financial Institutions

CBN-Office-Abuja

The Central Bank of Nigeria (CBN), has announced the reduction of interest rates on its facilities through participating Other Financial Institutions (OFIs) from nine percent to five percent per annum for one year, effective from March 1, 2020.

In a circular in Abuja today, May 27, signed by the Director, Financial Policy and Regulation Department , Kevin Amugo, the apex bank also announced that its 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.”

According to the circular, OFIs have equally been granted leave to consider temporary and time limited restructuring of the tenor and loan terms for households and businesses affected by coronavirus, subject to the recently issued guidelines for restructuring affected credit facilities in the OFI sub-sector.

The Bank’s Director, Corporate Communications Department, Isaac Okorafor, also said that the Management’s approval for the restructuring of credit facilities in the Other Financial Institutions (OFI) sub-sector was in line with the Bank’s desire to alleviate momentary strain on households, businesses and regulated institutions triggered by the lockdown due to coronavirus.

See also:  CBN Determined To Wade Through Challenges To Steer Economy From Recession - Spokesman 

According to Okorafor, the apex bank would continue to monitor developments and implement appropriate measures to safeguard financial stability and support stakeholders impacted by the COVID-19 pandemic.

Meanwhile, the Monetary Policy Committee (MPC) meeting of the CBN for the month of May, has been scheduled for tomorrow, May 28.

Editorial staff
Editorial Staff at Greenbarge Reporters is member of a team of journalists led by Editor-in-Chief, Yusuf Ozi Usman.