The Central Bank of Nigeria has announced a suspension of applications for new loans, under its development finance intervention funds programme.
The suspension represents a significant shift in its approach to development finance intervention funds, which was previously considered a cornerstone of the central bank.
The apex bank also charged Deposit Money Banks with the recovery of previously granted loans under the scheme.
The CBN made this known in a circular to the Chief Executives of banks, signed by the Acting Director, Development Finance Department, Sa’ad Hamidu, on Tuesday.
The circular titled ‘Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria, CBN Development Finance Intervention Programme’ read,
“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.”
