The Central Bank of Nigeria (CBN) has further spread its dragnet against loan defaulters, as it extends the Global Standing Instruction (GSI) recovery frequency for individuals from restricted to continuous and unrestricted.
Consequently, in a circular issued yesterday by the Director, Financial Policy and Regulatory Department, Mr. Chibuzo Efobi, indicates that the GSI would remain valid until such loans are fully recovered.
The circular number : FPR/DIR/PUB/CIR?001/039 reads in part:
“In furtherance of its mandate to promote financial system stability, the CBN released the circular on the Operational Guidelines oc the Global Standing Instruction (GSI( – Individual dated July 13, 2020.
“The initiative was conceived to fundamentally to address the recurring instances of willful loan default in the industry to: to identify and watchlist recalcitrant loan defaulters; enhance loan recovery from all eligible and funded accounts / wallets in the industry; improve credit repayment culture and reduce nonperforming loans in the Nigerian banking system.
“Consequently, please be informed that the frequency of recovery attempts via the GSI platform has been amended from a specific number to continuous and unrestricted.
“In order words, the GSI automated loan recovery feature applicable to all loans in the industry shall remain perpetually in place throughout the life of the loan and/or until the loan is fully repaid.”