Micro, Small and Medium Businesses to Receive a Boost of N220 billion – CBN

The CBN has set aside N220 billion for Micro,
Small, and Medium Enterprises (MSMEs) and the
money is to be released by the first quarter of
2013.
A CBN official who spoke in confidence said the
money is set to be released by the first quarter of
next year, partly to strengthen their liquidity
position for growth.
In his words, “There are indications that the fund
will be released in the first quarter of next year,
going by the CBN’s efforts to make the banks
start 2013 on a positive note. The apex bank is
making frantic efforts to finalise some issues
pertaining to the operations of the banks by the
end of 2012. One of the issues has to do with the
conclusion of the recapitalization and subsequent
grouping of MFBs into unit, state and national
levels.”
By the end of the year, precisely December 31,
the Central Bank would categorise the banks into
different levels to differentiate their efforts.
The Chairman, National Association, Microfinance
Banks (NAMBs), Southwest, Mr Olufemi Babajide,
noted that the MSME development fund, slated
for 2013 came at the right time.
“Though CBN has not made an official statement
on the issue of releasing the fund, but I think it
would certainly be next year. The reason is that
the banking watchdog would like to conclude the
issue of categorisation of the banks by December
end before releasing the fund. The categorisation
is going to determine what each bank would get
from the fund,” he said.
In his assuring words, he said banks have nothing
to worry about, that recapitalisation has been
made more flexible for the operators so, they
would definitely meet the deadline.
He added that, banks operators were free to
discuss mergers and acquisitions.


Source-Business News