Pursuant
to the objectives outlined under the fourth pillar and as part of its developmental
function, the CBN has introduced new initiatives to enhance the flow of credit
to the productive sectors of the economy.
The new incentives include:
5.1
N200 Billion Restructuring/Refinancing to the Manufacturing Sector/SMEs
In a
bid to unlock the credit market, the CBN provided N500 billion out of which N200
billion is for re-financing/re-structuring of banks‘ existing loan portfolios
to the manufacturing sector and SMEs.
The investment is in the form of
debenture stock to be issued by the Bank of Industry (BOI). The main objective
of the fund is to fast-track the development of the manufacturing sector by
improving access to credit by manufacturers as well as improving the financial
position of the DMBs. The category of facilities under the fund include
long-term loans for acquisition of plant
and machinery, refinancing of existing loans, resuscitation of ailing industries,
working capital and refinancing of existing lease.
The loan amount for a single
obligor is the maximum of N1 billion in respect of re-financing/restructuring with
an interest rate of 7.0 per cent payable on quarterly basis. All the 24 banks
in the country as well as Development Finance Institutions (DFIs) excluding the
Bank of Industry (BOI) are to participate in the fund. Thus far, the sum of
N130.2 billion has been disbursed from the fund with N117.7 as term loan while
the balance of N12.5 billion was disbursed as working capital.