Ifie Sekibo. MD/CEO. Heritage Bank. |
As
part of proactive measures introduced to cushion the effect of the COVID-19 and
to revamp the nation’s dwindling economy, Heritage Bank is set to disburse the
N100billion set aside by the Central Bank of Nigeria (CBN).
This
is in line with the apex bank’s policy to introduce another intervention scheme
directed to the health sector, which is known as the NGN100 Billion Credit
Support for the Healthcare sector (the Scheme) which specifically is to provide
credit to indigenous pharmaceutical companies and other healthcare value chain
players intending to build or expand their capacities.
Also,
the CBN resumed provision of foreign exchange to all commercial banks for
onward sales to parents wishing to pay schools fees and small medium
enterprises (SMEs) with plans to make essential imports needed to revamp
economic activities across the country. In particular, the CBN is resuming the
provision of over US$100 million per week for both categories.
Meanwhile,
Heritage Bank serves as a conduit which will assess and channel the profiles of
interested applicants to the CBN while using its platforms to create awareness
for the scheme, as the CBN has also made complete arrangements to resume
foreign exchange sales to the BDC segment of the market for business travels,
personal travels, and other designated retail uses, as soon as international
flights resume.
To
access the N100bn loans provided by the CBN for firms in the healthcare sector,
a corporate entity must submit its application to a participating financial
institution (PFI) which could be either a Deposit Money Bank or a Development
Finance Institution of its choice with a bankable business plan.
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 with the CBN processing and disbursing 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,
bear the credit risk and 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.
According
to the CBN, eligible participants under the scheme comprise healthcare product
manufacturers – pharmaceutical drugs and medical equipment; and healthcare
service providers/medical facilities – hospitals/clinics, diagnostic
centres/laboratories, fitness and wellness centres, rehabilitation centres,
dialysis centres and blood banks, among others.
Others
include pharmaceutical/medical products distribution and logistics services;
and other human healthcare service providers as may be determined by the CBN
from time to time.
Eligible
activities under the scheme would include manufacturing of pharmaceutical drugs
and medical equipment; establishment/expansion/upgrade of basic and specialised
healthcare facilities; and medical/pharmaceutical supplies.
Others
are medical/pharmaceutical research and development; distribution of
medical/pharmaceutical drugs and supplies; Manufacturing of
medical/pharmaceutical drugs distribution technology; and any other healthcare
value chain activity as may be prescribed by the CBN.
The
CBN said the term loan had a maximum of N2billion per obligor; and the interest
rate under the intervention would not be more than five per cent per annum up
until February 28, 2021; and that interest on the facility would revert to nine
percent as from March 2021.
To
access further details on the modalities, interested persons and institutions
can logon Heritage Bank’s website (www.hbng.com).
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