CBN Approves Regulatory Forbearance for Credit Offers Via OFI

• CBN Approves Regulatory Forbearance for Credit Offers Via OFI

In an effort to maintain monetary and financial stability in the country and mitigate the negative impact of COVID-19, the Central Bank of Nigeria (CBN) has approved regulatory forbearance for the restructuring of credit facilities offered through the Other Financial Institutions (OFI).

In a statement signed by Kevin Amugo, the Director, Financial Policy and Regulatory Department, CBN, and released on the bank’s website on Wednesday, the CBN said “in order to further mitigate the impact of the pandemic on households, businesses and regulated institutions,” the CBN facilities issued through OFIs are granted a year moratorium on all principal repayments, effective from March 1, 2020.

Also, the interest rates on the CBN intervention facilities issued through the OFIs were reduced from 9 percent to 5 percent per annum for 1-year starting from March 1, 2020.

Accordingly, the apex bank granted the OFIs “leave to consider temporary and time limited restructuring of the tenor and loan terms for households and businesses affected by COVID-19, subject to the recently issued guidelines for restructuring affected credit facilities in the OFI sub-sector.”

The statement added that the apex bank shall continue to monitor developments and deploy appropriate measures to protect the financial system and support stakeholders affected by the pandemic.