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Nigerian Stock Exchange. Banks agree to restructure loans.

Few days after the major world capital markets have had sustained upward movements, Nigerian banks have indicated their readiness to restructure loan facilities extended to investors.

This might come as good news to thousands of investors that have made serious losses and consequently incurred huge debts as a result of the down trend that has bewildered the stock market in the past 7 months. It is no news that the banking sector had given out billions of naira as margin facility to investors to purchase shares.
This singular action is believed by many as one of the major reasons behind the current market situation as share prices sored during the period the loans were made available. Stocks were therefore overpriced and the aftermath effect is what is been witnessed now.

The banks have now agreed to spread the existing loans between 6 months to a year in addition to the existing terms of loans already given. Although this action is a positive one, investors still insist that government should find a permanent solution to the stock market crisis as this is just a temporary one.

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