Nigerian Banks Restructure $20 Billion of Loans as Virus Hits

Nigerian banks are restructuring 41% of loans in the country after the central bank placed a moratorium on interest charges and principal debt repayments to cushion the blow of lower oil prices and fallout from the coronavirus, Bloomberg News reported. Loans worth 7.8 trillion naira ($20 billion) to 35,640 customers are being reorganized out of 18.9 trillion naira in credit across the industry, Central Bank of Nigeria Governor Godwin Emefiele said on Monday. Twenty-two of the nation’s lenders are involved in the transactions, he said. “If the CBN did not ask the banks to grant these forbearance to their customers, the loans will go bad immediately by our prudential ratios,” Emefiele said. He was speaking after the monetary policy committee decided to hold the benchmark interest rate at 12.5%. Read more