CBN extends interest rate cut on intervention loans by 12-month
By Samuel Bankole
The Central Bank of Nigeria (CBN) on Wednesday said it has extended the grace on interest rate reduction on its intervention fund by 12-month.
In a circular issued by its Director of Financial Policy and Regulation, Kelvin Amogu, the regulatory bank said the cut in interest rate to five percent from nine will now be enjoyed by beneficiaries of its intervention for an additional 12-month to February 28, 2022.
The CBN said it reduced the interest rate from 9 percent to 5 percent per annum for one year effective from March 1, 2020, as part of measures to mitigate the negative impact of the covid-19 pandemic on the economy.
“Credit facilities, availed through participating banks and OFIs, were also granted a one-year moratorium on all principal payments with effect from March 1, 2020,” the bank said.
It said following the expiration of the timelines on the facilities, it has approved the extension by another twelve months to February 28, 2022, of the discounted interest rate for the CBN intervention facilities.
It, however, said roll-over of the moratorium on the facilities shall be considered on a case by case basis.