The Central Bank of Nigeria (“CBN”) on 16 March, 2020 issued a circular to deposit money banks and the general public, in response to the COVID-19 pandemic and spill overs. The circular provides for an extension of moratorium of one year on all principal repayments on all CBN intervention facilities, effective March 1, 2020; Reduced interest rate on all applicable CBN intervention facilities from 9% to 5% per annum; Creation of a N50 Billion targeted credit facility; Creation of credit support for healthcare industry; Temporary and time-limited restructuring of the tenor and other terms of subsisting loans; Strengthening of the CBN’s Loan-to-Deposit Ratio (LDR) policy; and Alteration of the price of the official exchange rate by 15%. In furtherance of the above policies, the CBN has issued guidelines for the implementation of the N50 Billion targeted credit facility and the operation of the N100 billion credit support for the healthcare sector.
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