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Nigeria’s Central Bank cuts interest rate on all facilities from 9% to 5%, announces a N50 billion fund in response to COVID-19

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Godwin Emefiele

MON, MARCH 16 2020-theG&BJournal- The Central Bank of Nigeria (CBN) Monday announced 6 initial policy responses to combat the COVID-19 pandemic.

The measures announced in a press conference in Abuja include the extension of moratorium on loans, interest rate reduction and the creation of N50billion fund, credit support for health care sector, a regulatory forbearance and strengthening of loan to Deposit Ratio policy.

The apex bank cut interest rates on its facilities from 9% to 5% per annum with effect from March 1, 2020 while providing amortisation schedules for the bank’s beneficiaries.

The new measures according to economists, provides some sort of comfort for businesses and the economy but they doubt its impact on the financial markets.

Equities last week took a thorough beating amid the COVID-19 disruption and force the ASI decline by 13.6% w/w, as investors sold off across board.

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