CBN Says Banks Now Responsible for Loans Recovery, Suspends Applications

The Central Bank of Nigeria, CBN, suspending applications for new loans under its development finance intervention funds.

Also, banks are now responsible for recovering those already granted.

The apex bank announced this decision in a circular to the Chief Executive of banks, signed by Acting Director, Development Finance Department, Sa’ad Hamidu.

Among other things, the CBN said it had commenced pullback from direct development financing interventions.

The CBN added that the banks are now responsible for the recovery of loans granted so far under the development finance intervention funds.

The apex bank also noted that the interest rates, as well as other terms and conditions on all existing facilities, remain as contained in their respective approval letters.

It also noted that banks shall be responsible for the recovery of the outstanding balance on all facilities previously accessed through their channels.