Covid-19: CBN Cuts Interest Rate, Grants N50 billion Credit Facility

By John Okoh

 

Godwin Emefiele, CBN Governor

 

 

In anticipation that the global economy will go into recession following the ongoing disruption of global supply chains, sharp reduction in crude oil prices, stock and financial markets by the Covid-19 pandemic, the Central Bank of Nigeria, CBN, has unveil some policy measures for the economy.

Speaking on Monday on the apex banks measures, Governor of the Bank, Godwin Emefiele said the measures are meant to provide support for affected households, businesses, regulated financial institutions and other stakeholders in order to cushion adverse economic impact of the coronavirus pandemic.

In the circular to deposit money banks and the general public, the bank granted a year extension on intervention loan under moratorium, reduced interests rates from 9 per cent to 5 per cent per annum effective March 1, 2020, credit support for healthcare industry and the creation of a N50 billion targeted credit facility.

“The CBN hereby grants all Deposit Money Banks leave to consider temporary and time-limited restructuring of the tenor and loan terms for businesses, houesholds most affected by the outbreak of Covid-19, particularly Oil and Gas, Agriculture and manufacturing,” the statement said, adding that the apex bank would work with the banks to ensure transparency of the process.