CBN Un­veils Modal­i­ties to Dis­burse N100bn Health­care Credit Sup­port

THISDAY - - FRONT PAGE - Obinna Chima

Cen­tral Bank of Nige­ria (CBN) yes­ter­day re­leased guide­lines for ac­cess­ing the N100 bil­lion credit sup­port fa­cil­ity for the health­care sec­tor an­nounced last week by its Gov­er­nor, Mr. God­win Eme­fiele.

The fund was an­nounced as part of a raft of mea­sures to cush­ion the im­pact of the COVID-19 pan­demic on the econ­omy.

This came a day af­ter the apex bank re­leased the guide­lines for a N50 bil­lion tar­geted credit fa­cil­ity that was also an­nounced last week.

Ac­cord­ing to a cir­cu­lar dated March 25 and signed by the CBN Direc­tor, Fi­nan­cial Pol­icy and Reg­u­la­tion Department, Mr. Kevin Amugo, ob­tained on the bank’s web­site, the scheme would be funded from the Real Sec­tor Sup­port Fa­cil­ity –

Dif­fer­en­ti­ated Cash Re­serves Re­quire­ment (RSSF-DCCR).

The bank stated that the exit date of the fa­cil­ity shall be De­cem­ber 31, 2030.

It listed eligible par­tic­i­pants un­der the scheme to in­clude health­care prod­uct man­u­fac­tur­ers, in­clud­ing phar­ma­ceu­ti­cal drugs and med­i­cal equip­ment; health­care service providers/med­i­cal fa­cil­i­ties – hos­pi­tals/clin­ics, di­ag­nos­tic cen­tres, lab­o­ra­to­ries, fit­ness and well­ness cen­tres, re­ha­bil­i­ta­tion cen­tres, dial­y­sis cen­tres, blood banks, etc.

Some of the eligible activities to be cov­ered un­der the scheme in­clude man­u­fac­tur­ing of phar­ma­ceu­ti­cal drugs and med­i­cal equip­ment; es­tab­lish­ment, ex­pan­sion and up­grade of ba­sic and spe­cialised health­care

fa­cil­i­ties; for med­i­cal and phar­ma­ceu­ti­cal sup­pli­ers.

The cir­cu­lar said the loan limit would in­clude 20 per cent of the work­ing cap­i­tal of the aver­age of three years of a com­pany’s turnover, sub­ject to a max­i­mum of N500 mil­lion per obligor and the max­i­mum term of the loan shall be N2 bil­lion per obligor.

Also, in­ter­est and prin­ci­pal re­pay­ment shall be made on in­stall­ment ba­sis by the bor­row­ers to the par­tic­i­pat­ing fi­nan­cial in­sti­tu­tions (PFIs), ac­cord­ing to the ap­proved re­pay­ment sched­ule.

In ad­di­tion, the eligible PFIs shall be the com­mer­cial banks and de­vel­op­ment fi­nance in­sti­tu­tions,

“The PFI shall re­mit in­ter­ests and prin­ci­pal re­pay­ments re­ceived to the scheme on quar­terly ba­sis. A cor­po­rate en­tity shall sub­mit an ap­pli­ca­tion to the PFIs of its choice with a bank­able busi­ness plan. PFI shall ap­praise and con­duct due dili­gence on the ap­pli­ca­tion.

“Upon ap­proval by the

PFI’s credit com­mit­tee, the ap­pli­ca­tion shall be sub­mit­ted to the CBN with rel­e­vant doc­u­ments at­tached. The CBN will process dis­burse funds to the PFIs for on­ward re­lease to the pro­ject,” the CBN added.

To en­sure ef­fec­tive mon­i­tor­ing and re­port­ing of the funds when dis­bursed, the bank stated that pe­ri­odic joint

mon­i­tor­ing of the activities fi­nanced un­der the scheme would be con­ducted by the PFIs and the CBN.

It, how­ever, warned that de­lay and non-re­lease of the funds to ben­e­fi­cia­ries within the agreed time­line on the of­fer let­ter shall at­tract penalty at the PFI’s max­i­mum lend­ing rate.

Newspapers in English

Newspapers from Nigeria

© PressReader. All rights reserved.