Economy and Business

BREAKING: CBN suspends new loan applications in development finance intervention

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

The move, outlined in a circular titled “Suspension of Acceptance of New Applications under the Existing CBN Development Finance Intervention Programme,” was addressed to the Chief Executives of banks.

The circular, signed by Sa’ad Hamidu, the Acting Director of the Development Finance Department, marks a strategic shift in the CBN’s operational focus.

The suspension signifies a departure from the bank’s previous approach, which heavily relied on development finance intervention funds.

It indicates a temporary halt in issuing new loans through these intervention programs.

Moreover, the CBN has tasked commercial banks, previously involved in facilitating the distribution of these intervention loans, with the responsibility of recovering outstanding loans issued under these programs.

However, the circular did not specify the duration of the suspension or the reasons behind the move.

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