CBN Directs Banks Not To Charge Interest On Petrol Subsidy Debts
The federal government is scouting for a way to sort out all the outstanding debt issues it has with Nigeria’s powerful oil marketers.
Part of the measures the government is now employing is asking the banks not to charge interest on the loans advanced.
If this isn’t making much sense to you, we’ll try to explain.
The banks extended loans to the oil marketers to import petrol, and they know that it is only when the government settles the marketers that they can get their money back.
So, the government had been owing the marketers and the interests on those loans had been rising.
In fact, the banks had been reported to have started taking over the assets of some of the oil marketers.
But the government through the Central Bank of Nigeria, CBN has now stepped in. They are saying they will settle the debts, but they can’t afford to pay the interests, so the CBN is asking the banks to forget about the interests.
The interest covers loans advanced the marketers from June 2017 to December 2018.
Punch reports that the CBN was said to have conveyed the message to banks in a meeting with them and marketers last month, as part of efforts to resolve the outstanding subsidy debts owed by the Federal Government to marketers.
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