IMPACTS OF COVID-19 PANDEMIC AND MEASURES AT CONTAINMENT ON LOAN REPAYMENT OBLIGATION

Share on linkedin
Share on twitter
Share on facebook
Share on email
Share on whatsapp
Share on print

Introduction

Debt financing has become a significant aspect of capital raising for businesses globally. In 2019, the Central Bank of Nigeria issued a directive that increased Loan-to-Deposit Ratio (LDR) to 65%, which means that Deposit Money Banks (DMBs) were obligated to give 65% of their deposits as loan. Due to this directive, many DMBs gave out more loans, but no one could have predicted a global pandemic that would force businesses to close down with grim prospects on ability of borrowers to fulfill their obligations under a loan contract.Read More…….

Stay current on your favorite topics

About the Firm

At Tope Adebayo LLP, we strive to continually improve and cultivate a close understanding of the Nigerian industry, an intimacy with the legal and procedural regimes of the environments in which clients operate and a strong commitment to providing dedicated and comprehensive services to our clients.