The Bank of Industry (BoI) has granted three months moratorium to all loans it extended to its customers to enable them cope with the negative impact of the COVID-19 pandemic on their businesses.
The Bank explained in a statement yesterday that the moratorium was in line with the recent directive of President Muhammadu Buhari on loans’ moratorium and, “advised that customers requiring more than three months can apply for a further extension, which can be up to one year (12 months).”
The Bank also reduced the, interest rates on all BoI -funded projects by two per cent per annum, from the 10 per cent it was previously, to eight per cent per annum. This became effective since April 1.
This, stated, has also been communicated to customers and partnering commercial banks.
In addition, the BoI said it has also worked with its funding partners to obtain interest rate reductions on some of the funds it manages.
“The Bank worked with the Nigerian Content Development Management Board to reduce the interest rates on credit facilities approved under its managed fund from eight per cent pa to six per cent per annum.
“Moreover, all intervention funds granted by the Central Bank of Nigeria (CBN) and disbursed by the BoI have been covered by the CBN’s palliative measures, which include moratorium extension and interest rate reduction to five per cent per annum, which has also been communicated to the relevant customers.
“The Bank has written to all the managing directors and chief risk officers of its partnering commercial banks, officially notifying them of the bank’s position on these initiatives,” it added.
Other interventions of the BoI to support government and private sector initiative to fight COVID-19, it revealed, included the donation of N700 million to the COVID-19 fund, to the Lagos State Government and the FCT Ministerial Committee on COVID-19.
“These are trying times. But you can take comfort in the commitment of our health officials, the coordinated response of our federal government and the strength of our financial system.
“The Bank wishes to restate its commitment towards actualising its goal of supporting economic development and industrialisation, which it would continue to implement through its mission of providing financial and business support services to enterprises in line with the economic agenda of the federal government of Nigeria,” the statement added.
It described the COVID-19 pandemic as a clear and present danger to the world especially developing nations like Nigeria from a health as well as an economic perspective.
The BoI also noted that, “these are very challenging times for all Nigerians, including our dear customers.”
“This is why the Bank has been working tirelessly to provide the critical support required by our customers not only to survive but to thrive in these difficult times,” BoI said.