As
part of proactive measures to cushion the effect of the COVID-19 and
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).
Specifically, the scheme is to provide credit to indigenous
pharmaceutical companies and other healthcare value chain players
intending to build or expand capacity.
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.
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.
The CBN would process and disburse 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, and bear the credit risk.
They
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/
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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