Reps foreclose acquisition of new debt by AMCON

Assets Management Corporation of Nigeria (AMCON) has stated that 350 bank debtors on its books owe N2.5 trillion.

The corporation’s managing director, Ahmed Kuru, who made this known in Enugu, at the retreat of the banking and currency committee of the House of Representatives, said the bad debts accounts for about 80 per cent of the non-performing loans it bought from banks.

Kuru explained that AMCON has engaged assets trackers and strengthen its legal machinery to recover assets of the bad debtors.

In the last two years, Kuru said AMCON repaid to the Central Bank of Nigeria (CBN) revenue of N56.4 billion in 2015 and N191.1 billion last year from the seized assets of the bank debtors.

“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.

Chairman of the House banking and currency committee, Jones Onyeneri, said that national assembly will not allow AMCON to buy new non-performing debts from banks as it is being canvassed in some quarters.

According to him, purchasing of new bank debts by AMCON is not desirable for now, considering that the economy is gradually recovering after sliding into recession.

Hon. Onyeriri said, “We are also aware that some economists are clamouring for AMCON to buy more toxic assets from the Eligible Financial Institutions (EFIs) in view of the very high level of the non-performing loans that are worse than the 2009 experience and far above the regulatory threshold. We wish to sound a note of warning that this Committee will not; I repeat will not support any such move, at least not at a time like this in the history of our economy.”

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