Nigerian banks have for so long found it unattractive to invest in the real sector, particularly the income and employment generating SMEs; so, it would be foolhardy to expect that the largesse of an uncollateralised $7bn low interest loan would change their attitude to the Nigerian economy. The bizarre strategy of a minimal return of three to five per cent for a $7bn investment without an overtly declared time limit is amplified by the CBN’s willingness to conversely pay interest rates of between 12 and 17 per cent for monies it borrows from these same banks to reduce surplus cash from the domestic capital market in Nigeria!
Posted on: Mon, 30 Sep 2013 01:35:07 +0000
Trending Topics
Recently Viewed Topics
© 2015