In a recent move, the Central Bank of Nigeria (CBN) has pressed the pause button on new loan applications as part of its development finance intervention funds program.
The announcement, conveyed through a circular to the Chief Executives of banks and signed by the Acting Director of Development Finance Department, Sa’ad Hamidu, came on Tuesday, December 13.
This decision implies a temporary halt to the acceptance of new loan applications, and businesses or individuals interested in these interventions will need to await further instructions from the CBN regarding the resumption of the application process. Stay tuned for updates!
“Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria, CBN Development Finance Intervention Programme
“In furtherance of the Central Bank of Nigeria’s new policy thrust focusing on its core mandate of ensuring price and monetary stability, the Bank has commenced its pullback from direct development financing interventions.
“Accordingly, the CBN would be moving into more limited policy advisory roles that support economic growth.
“In consideration of the above, the CBN wishes to inform you that it has stopped accepting new loan applications for processing under any of its existing intervention programmes and schemes.
“It is important that you communicate this to your customers. And, kindly note that the interest rates, as well as other terms and conditions on all existing facilities, remain as contained therein in their respective approval letters.
“You may also wish to note that your bank shall be responsible for the recovery of the outstanding balance on all facilities previously accessed through your bank.”