Central Bank of Nigeria (CBN) Wednesday released guidelines for accessing the N100 billion credit support facility for the healthcare sector announced last week by its Governor, Mr. Godwin Emefiele.
The fund was announced as part of a raft of measures to cushion the impact of the COVID-19 pandemic on the economy.
This came a day after the apex bank released the guidelines for a N50 billion targeted credit facility that was also announced last week.
According to a circular dated March 25 and signed by the CBN Director, Financial Policy and Regulation Department, Mr. Kevin Amugo, obtained on the bank’s website, the scheme would be funded from the Real Sector Support Facility – Differentiated Cash Reserves Requirement (RSSF-DCCR).
The bank stated that the exit date of the facility shall be December 31, 2030.
It listed eligible participants under the scheme to include healthcare product manufacturers, including pharmaceutical drugs and medical equipment; healthcare service providers/medical facilities – hospitals/clinics, diagnostic centres, laboratories, fitness and wellness centres, rehabilitation centres, dialysis centres, blood banks, etc.
Some of the eligible activities to be covered under the scheme include manufacturing of pharmaceutical drugs and medical equipment; establishment, expansion and upgrade of basic and specialised healthcare facilities; for medical and pharmaceutical suppliers.
The circular said the loan limit would include 20 per cent of the working capital of the average of three years of a company’s turnover, subject to a maximum of N500 million per obligor and the maximum term of the loan shall be N2 billion per obligor.
Also, interest and principal repayment shall be made on installment basis by the borrowers to the participating financial institutions (PFIs), according to the approved repayment schedule.
In addition, the eligible PFIs shall be the commercial banks and development finance institutions,
“The PFI shall remit interests and principal repayments received to the scheme on quarterly basis. A corporate entity shall submit an application to the PFIs of its choice with a bankable business plan. PFI shall appraise and conduct due diligence on the application.
“Upon approval by the PFI’s credit committee, the application shall be submitted to the CBN with relevant documents attached. The CBN will process disburse funds to the PFIs for onward release to the project,” the CBN added.
To ensure effective monitoring and reporting of the funds when disbursed, the bank stated that periodic joint monitoring of the activities financed under the scheme would be conducted by the PFIs and the CBN.
It, however, warned that delay and non-release of the funds to beneficiaries within the agreed timeline on the offer letter shall attract penalty at the PFI’s maximum lending rate.
Source: THISDAY
