The Central Bank of Nigeria, CBN, has announced a stop to new loan applications under its development finance intervention funds scheme.
The suspension signals a dramatic shift in the central bank’s stance on development finance intervention funds, which were formerly regarded as a cornerstone.
The central bank also tasked Deposit Money Banks with recovering already given loans under the plan.
The CBN announced this in a circular to bank CEOs issued by the Acting Director, of the 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.”