The Central Bank of Nigeria, (CBN), has banned the use of foreign denominated collaterals for naira loans except Eurobonds including Standby Letters of Credit which are exempted from the ban.
Also, the Central Bank of Nigeria (CBN) has given banks three months to wind up naira loans that have been backed up by foreign currency (FCY) denominated collaterals, saying its use is now prohibited.
In a letter to all banks issued by the acting Director Banking Supervision department of the CBN, Dr Adetona Adedeji, the apex bank said “the current practice of using foreign currency-denominated collaterals for Naira loans is hereby prohibited.
The apex bank furthered that the use can be permitted in situations where the foreign currency collateral is either Eurobonds issued by the Federal Government of Nigeria or guarantees of foreign banks, including Standby Letters of Credit.
“In this regard, all loans currently secured with dollar-denominated collaterals other than as mentioned above should be wound down within 90 days, failing which such exposures shall be risk-weighted 150 per cent for Capital Adequacy Ratio computation, in addition to other regulatory sanctions
Related: MUSIC: Camidoh – Save My Soul
Last updated: Just Now
See All Latest Nigerian Music Right Now!!!
Share On:
Top 10 Hottest Songs
Nigerian / African Music Darkoo – Solar ft. Ruger
Nigerian / African Music Angélique Kidjo – Aye Kan (Are You Coming Back?) ft. Ayra Starr
Nigerian / African Music Jeriq – WINNER
Nigerian / African Music ZerryDL – Igho
Nigerian / African Music ZerryDL – Stack ft. Jenerall, Tega Boi DC
Nigerian / African Music Black Sherif – PopStar
Nigerian / African Music DJ Big N – I Like To Party ft. Phyno
Nigerian / African Music Boy Spyce – Arise ft. Falz
Nigerian / African Music Evado – Thankful ft. Jeriq
Nigerian / African Music Evado – Chisom ft. DanDizzy