Bad bank debtors are economic saboteurs – AMCON

The Asset Management Corporation of Nigeria (AMCON) has described debtors of the Corporation as economic saboteurs and should be made to fulfill their obligations for economic growth.

The Corporation described as unacceptable the way economy was ‘bleeding’ while the debts owed it by 350 Nigerians would be enough to fund the deficit in the 2017 budget.

Its Managing Director , Kuru said that henceforth AMCON would move hard on such debtors with a view to freeing some money for the economy to grow. Kuru, who spoke in Enugu during a retreat for AMCON and members of the House of Representatives Committee on Banking and Currency said that the obligors owed the corporation to the tune of N2.5 trillion, adding that the prevailing situation had hampered business models in the country. He said that it was more intriguing that the debtors had sued in various courts across the country either by disputing the debt or claiming damages against AMCON. “Our recent assessment of obligors identified 350 accounts that represent about 80 per cent of AMCON’s current exposure of N2.5 trillion as at Dec. 31, 2016. “Consequently, we have repositioned our debt recovery approach to strengthen legal and credit restructuring units to collaborate on the aforementioned accounts termed defaulters,” he said. He said that the Corporation was established to intervene in the banking sector to maintain economic and social stability in Nigeria due to the unprecedented rise in nonperforming loans. “AMCON acquired over 13, 000 of such loans worth N3.7 trillion from 22 banks and injected N2.2 trillion as financial accommodation to 10 banks in order to prevent systemic failure. “This intervention helped stabilise the financial system as about N3.66 trillion of depositors’ funds and interbank takings were protected and approximately 14,000 jobs were saved,” he said. Kuru said that AMCON had so far recovered N716.1 billion from obligors of which cash and assets accounted for 45 per cent and 55 per cent respectively.

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