COVID-19: CBN okays reliefs on loans in OFIs Sector, reduces interest rates from 9% to 5%

The Central Bank of (CBN) reduced interest rates on its facilities through participating Other Financial (OFIs) from nine to five per cent per annum for one year, from March 1, 2020.

The CBN made this known circular signed by the Director, Financial Policy and Regulation Department, Kevin Amugo on Wednesday.

The apex bank said the move was part of the bank’s continued effort to mitigate the impact of the corona virus (COVID-19) on households, businesses and regulated .

It announced that CBN intervention facilities obtained through participating OFIs Microfinance Banks (MFBs), Primary Mortgage Banks, and , among others would be given a further one-year moratorium on all principal repayments, also March 1, 2020.

According to the circular, OFIs have equally been granted leave to temporary and time limited restructuring of the tenor and terms for households and businesses by COVID-19, subject to the recently issued guidelines for restructuring credit facilities in the OFI sub-sector.

Expatiating on the decision of the Bank, the Director, Corporate Communications Department, Mr Isaac Okorafor, said the management approval for the restructuring of credit facilities in the 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 COVID-19.

Okorafor explained CBN would also continue to monitor developments and implement appropriate measures to safeguard financial stability and support stakeholders impacted by the COVID-19 pandemic.

Meanwhile, he disclosed Monetary Policy Committee (MPC) meeting of the CBN for the month of May 2020, had been scheduled to hold on Thursday. (NAN)