A moratorium on new loan applications under its development finance intervention funds programme has been declared by the Central Bank of Nigeria, or CBN.
The suspension marks a significant change in the central bank’s position towards development finance intervention funds, which were previously thought to be essential.
Additionally, the recovery of already granted loans under the plan was given to Deposit Money Banks by the central bank.
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This was disclosed by the CBN in a memo sent to bank CEOs on Tuesday by Sa’ad Hamidu, the acting director of the department of development finance.
The CBN Development Finance Intervention Programme, which is the current Central Bank of Nigeria, has suspended the acceptance of new applications.
“The Central Bank of Nigeria has started to reduce its direct development financial interventions in support of its new policy orientation, which is centred on its primary mandate of guaranteeing price and monetary stability.
As a result, the CBN would be assuming smaller, more consultative roles in policy matters that promote economic expansion.
“The CBN would like to notify you that, in light of the aforementioned, it is no longer taking fresh loan applications for processing under any of its current intervention programmes and schemes.
It’s critical that you let your clients know about this. Please take note that all current facilities’ interest rates and other terms and conditions are still as stated in the corresponding permission letters for each of them.
You might also want to be aware that any unpaid balances on any facilities you have previously accessed through your bank must be recovered by your bank.
