The Development Finance Department of the CBN said this in
its revised ABP Guidelines released on Friday.
It said, “Failure to repay facility as and when due would
attract suspension from accessing new facility until the existing facility is
recovered; call-in the personal guarantee of the leadership; and foreclose on
all pledged collateral.”
The CBN vowed to get tough on beneficiaries guilty of
diverting the funds.
According to the apex bank, punishment for such diversion
include blacklisting of the association and its leadership from all CBN
interventions; prosecution of the leadership by the participating financial
institutions; repayment of the loan by the guarantors/cooperatives/commodity
and associations.
It said the anchor would cease to participate in the ABP and
any other CBN interventions for failure to offtake quality produce from
farmers.
The CBN described an anchor as a duly registered entity with
the capacity to offtake produce/output at agreed prices.
The broad objective of the ABP, according to the central
bank, is to create economic linkages between smallholder farmers and processors
with a view to increasing agricultural output and ensuring food price
stability.
It said the revised guidelines addressed current realities
and developments in the programme, aimed at promoting best practices in its
implementation.
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