Indications
have emerged that a number of foreign banks have started suspending short and
medium-term credit lines to their Nigerian counterparts as falling crude oil
prices continue to fuel exchange rate volatility and uncertainties in the
economy.
This is
coming just as several Nigerian lenders are said to be seeking extension on the
settlement of their debt obligations to the foreign banks.
Top bankers
stated on Tuesday that the overseas banks had been expressing
deep concerns about the ability of Nigerian banks to continue to meet up with
all their foreign currency denominated credit lines, especially maturing
Letters of Credit, as the external reserves continued to be depleted due to
falling oil revenue.
The situation
has been further worsened by speculations over the possible devaluation of the
naira after the February elections
This,
according to banking sources, has made some of the foreign banks to suspend
credit lines to some Nigerian banks.
It was
further learnt that the Central Bank of Nigeria’s regulations aimed at curbing
speculative attack on the naira had led to some delays in accessing foreign
currencies by the banks.
No comments:
Post a Comment