Coronavirus: CBN reduces interest rates, rolls out other interventions to Cushion effects

The Central Bank of Nigeria has announced measures to cushion the effects of coronavirus on the Nigerian economy.

The apex bank predicts that the global economy will definitely go into recession as a result of the prevailing situation around the world.

Amongst the measures announced are a Reduction in interest rate on all its existing interventions from 9% to 5% from March 1st.

The Extension of moratorium on all CBN interventions by 1 year starting from March 1st.

The Creation of a N50b integrated credit facility for households and msmes affected by coronavirus.

Giving credit support to health care services and pharmaceutical companies intending to expand their operations or build healthcare facilities.

Strengthening the loan to deposit ratio policy to allow for direct credit to individuals , households and businesses as well as extension of long term facilities to borrowers.

And providing liquidity backstops when required as a lender of last resort.

(TVC)