Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Nigerian banks to restructure over a third of loans -MPC member

Published 25/06/2020, 15:25
Updated 25/06/2020, 15:30
© Reuters.

By Chijioke Ohuocha
ABUJA, June 25 (Reuters) - Nigerian banks plan to
restructure over a third of loans after running into repayment
problems due to the coronavirus pandemic, a member of the
central bank monetary policy committee said.
A total of 17 banks have submitted requests to restructure
over 32,000 loans for businesses and individuals, representing
33% of loans, Aisha Ahmad said in a statement published on the
central bank's website late on Wednesday.
She said the majority of the loans to be restructured were
within the manufacturing and general commerce sectors.
"Results from ongoing impact assessments of COVID-19 effects
on impairment by banks indicate a modest impact given regulatory
policy measures already implemented," Ahmad said.
Mid tier lender FCMB FCMB.LG said in May that it was
restructuring half of its loans, mainly involving the oil and
retail sectors. The central bank in March said it would allow lenders to
give customers more time to repay loans and create a fund to
combat the impact of the coronavirus pandemic, which triggered
an oil price crash and weakened the currency NGN=D1 .
Before the pandemic, the central bank forced banks to lend
to stimulate an economy mired in low growth. But lenders wary of
an increasing loan pile held back and were
penalised. Total loans grew 3 trillion naira ($8.31 billion) to 18.6
trillion naira over the last year ending in April, Ahmad said.
The oil price crash also hurt energy companies, long the
most favoured sector for bank loans. In April, credit to the oil
sector accounted for 26% of all corporate loans, another MPC
member, Adamu Lametek, said in the statement.
($1 = 361.00 naira)

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.