CBN Announces Intervention Loans Expansion To Pharmaceutical Companies

The Central Bank of Nigeria (CBN) on Monday, announced intervention loans to pharmaceutical companies planning to expand or open drug manufacturing plants in Nigeria .

CBN Govenor Godwin Emefiele said the apex bank will grant one-year moratorium on all principal repayments on all CBN intervention facilities .

The apex bank said the intervention facilities to hospitals and healthcare practitioners who plan to build health facilities or expand existing facilities to first class centres .

The CBN also restated commitment to support household, businesses, other stakeholders to cushion economic impact of corona virus .

According to a statement, the apex bank directed participating financial institutions to provide new amortization schedule for all beneficiaries of CBN intervention facilities .

Emefiele also announced reduction of interest rates on all applicable CBN intervention facilities from 9% to 5% per annum with effect from March 1, 2020 .

“CBN creates targeted credit facility through NIRSAL Microfinance Bank for households and small and medium-sized enterprises (SMEs) hit by COVID19.

.

“CBN grants Deposit Money Banks (DMBs) leave to consider temporary and time-limited restructuring of tenor and loan terms for businesses in oil and gas, agriculture, manufacturing and households affected by outbreak of COVID-19 .

The Governor pledged that CBN support for industry funding levels to maintain capacity of DMBs to direct credit to individuals .

“The CBN stands ready to provide liquidity backstops as and when required in view of its role as Banker to the Federal Government and lender of last resort” .

The apex regulatory bank said it would issue further updates on Bank’s response to economic impact of corona virus.