Deposit Money Banks (DMBs) participating in the Commercial Agricultural Credit Scheme (CACS) have been advised to commence the repatriation of proceeds of the loan repayment on quarterly basis with effect from
They are to remit the monies to the Central Bank of
The circular titled: "Commencement of Quarterly Repatriation of Proceeds on CACS Loan Repayment," was signed by the Director,
The central bank in collaboration with the
The CACS is a sub-component of the federal government's Commercial Agriculture Development Programme (CADP).
This fund complements other special initiatives of the central bank in providing concessionary funding for agriculture such as the Agricultural Credit Guarantee Scheme (ACGS) which is mostly for small scale farmers, Interest Draw-back scheme, Agricultural Credit Support Scheme, among others.
The scheme is being financed from the proceeds of the N200 billion three-year bond raised by the Debt Management Office (DMO). The fund is always made available to the participating banks to finance commercial agricultural enterprises.
Continuing, the regulator in the circular stated that further to the revised CACS guidelines issued on
"Whenever a credit facility is discontinued, the PB shall repatriate the funds within five working days to the CBN, giving details of the credit facility."
It warned that failure to adhere to guidelines would attract sanctions in line with Section 15 (Viii) which states that failure to repatriate expired projects funds within five working days "shall be charged a penalty interest of MPR +300 basis points for he period the fund was repatriated."
The CBN recently approved the extension of the terminal date of the CACS from
Most Popular Stories
- Small-Business Loans Fueling Economic Growth
- Illegal Immigration Near Historic Low, Despite What You May Have Heard
- Gasoline Costs Drive Consumer Price Increases
- Tesco Head Steps Down After Profit Warning
- Saudi Arabia Will Open Stock Market to Foreigners
- Want a Job? Try Minneapolis
- Russians Fed Steady Diet of Conspiracy Theories
- Comic-Con Offers Toy Designers a Chance to Go Wild
- Google Chrome Bug Draining Batteries: Report
- Startup Makes It Easier to Buy American