CBN Extends Loan To Skye Bank To Boost Liquidity, Says No Plan To Sell

The Central Bank of Nigeria (CBN) said it extended a loan to Skye Bank Plc to boost its liquidity after the lender breached requirements on capital and lending.
The short-term lending facility will allow new management to “ensure that some withdrawals it suffered in the wake of the undue panic of last week do not adversely affect its operations,’’ Isaac Okorafor, a spokesman for the Abuja-based Central Bank of Nigeria, said in e-mailed response to questions. The regulator has also issued guarantees to depositors and creditors of Skye Bank as a demonstration of its health, he said.
The central bank replaced the top management of Skye Bank early this month after it breached required thresholds on liquidity and non-performing loans. While the regulator moved to calm markets, saying Skye and the industry remained healthy, the stock plunged to record lows, leading declines among other Nigerian lenders.
The central bank said it has no plan to sell Skye Bank.
Source: Bloomberg

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