BREAKING: CBN Suspends New Loan Applications For Intervention Program

The Central Bank of Nigeria (CBN) has temporarily suspended accepting new loan applications under its existing Development Finance Intervention Programme.

VerseNews reports that the decision was communicated in a circular titled “Suspension of Acceptance of New Applications under the Existing CBN Development Finance Intervention Programme” addressed to the Chief Executives of banks.

This move represents a shift in the CBN’s operational focus, indicating a temporary pause in issuing new loans through existing intervention programs.

The circular also tasks commercial banks with recovering outstanding loans issued under these programs.

The duration and specific reasons for the suspension were not provided in the circular.

The circular which was signed by Ag. Director, Development Finance Department, Sa’ad Hamidu, reads; “In furtherance of the Central Bank of Nigeria’s (CBN) new policy thrust focusing on its core mandate of ensuring price and monetary stability, the Bank has commenced its pull back 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 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.”