CBN disburses N94.34bn COVID-19 healthcare funds

CBN disburses N94.34bn COVID-19 healthcare funds

The Central Bank of Nigeria has disbursed N94.34bn out of the N100bn credit intervention for the healthcare industry which it introduced as part of its measures to cushion the impact of the coronavirus pandemic on the economy.

This CBN disclosed this in its report from its recent Monetary Policy Committee meeting which was presented by the CBN Governor, Mr Godwin Emefiele, in Abuja.

Part of its report read, “Under the N100bn Health Care intervention Fund, the bank has disbursed N94.34bn, and is willing to expand the facility to 85 projects in the pharmaceutical industry, hospitals and state governments for both brown field and green field projects, mostly to expand pharmaceutical drug lines, acquire MRI and other equipment and upgrade laboratories and other hospital services,” he said.

The apex bank had earlier stipulated the requirements to access the funds.

To access the loans, a corporate entity must submit its application to a participating financial institution which could be either a Deposit Money Bank or a Development Finance Institution of its choice with a bankable business plan, CBN stated in its guidelines.

It stated in its latest guidelines that the PFI must appraise and conduct due diligence on the application; and upon approval by the PFI’s credit committee, the application would be submitted to the apex bank with relevant documents attached.

The CBN would process and disburse funds to the PFI for onward release to the project, it added.

The CBN stated that the PFI must receive and review applications submitted by its customers; undertake due diligence based on normal business considerations; and bear the credit risk

They must also issue offer letters and forward qualified applications to the CBN; disburse the released funds to successful applicants; monitor the project and recover the loans from the beneficiaries; and maintain adequate records of all beneficiaries and facilities.

It requires the PFIs to register all movable assets with the National Collateral Registry; forward periodic returns in the prescribed format on the scheme to the CBN; comply with the guidelines; and carry out any other duties as the CBN may prescribe from time to time.