CBN declares banks in charge of loan recovery, halts applications.
The Central Bank of Nigeria (CBN) has halted the acceptance of new loan applications for its development finance intervention funds. Furthermore, the responsibility for recovering previously granted loans has been shifted to the banks, as stated in a circular addressed to the Chief Executive Officers of banks.
The circular, titled “Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria, CBN Development Finance Intervention Programme,” emphasizes the CBN’s transition away from direct development financing interventions and highlights the banks’ role in loan recovery.
The CBN emphasizes that interest rates and terms on existing facilities will remain unchanged, and banks are tasked with recovering outstanding balances on previously accessed facilities.
source:
Vanguard
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