The corporation said that individuals or companies can come directly to the organisation to resolve their loan.
The Asset Management Company of Nigeria, AMCON, has called on its debtors, both companies and individuals who have outstanding loan obligations and are not already in discussions with the organisation, to approach it for settlement discussions.
Kayode Lambo, Head, Corporate Communications AMCON, made this known in Lagos on Thursday. The corporation also made this known via advertorials in national dailies.
The corporation said that individuals or companies can come directly to the organisation to resolve their loan. It added that a consultant is not necessarily needed to broker this resolution but if such a situation were to occur, the affected customer would be expected to attend at least the first meeting together with the consultant.
According to the corporation, failure to do this, may require that it exercise receivership. It can also liquidate, take possession of, declare a debtor insolvent and thereafter sell off his asset to recover its debts.
The Corporation however stated its preference for voluntary and amicable resolution of debt, as much as possible.
Banks had earlier been barred by the Central Bank of Nigeria to withhold further credit from the companies and individuals with debts stakes at AMCON, in a bid to instill discipline in the industry. According to the Central Bank, the debtors are mandated to settle with AMCON before they can access further credit from the banks.
Nigeria’s Asset Management Corporation of Nigeria, otherwise referred to as the nation’s bad bank, was setup to revive and stabilise Nigeria’s banking industry through the purchase of non-performing loans, NPLs, of the nation’s banking industry.
A Financial Derivatives Company, FDC, report states that AMCON has so far acquired over 10,000 NPLs worth N3.5 trillion. Before its formation, NPLs ratio in the Nigerian banking industry was in excess of 35%. As of December 31, 2011 the NPL ratio had fallen to 5%, enabling the banks to focus on lending. In addition, AMCON injected fresh capital into eight Nigerian banks, five of which have entered into successful mergers.
AMCON was initially conceptualized to be a bank to resolve the serious and grave situation of the banking industry and insulate the system from those risks. According to FDC, a diversified financial institution, apart from the resolution of manifested risks and toxic assets roughly estimated at N4trn, it was also considered an essential part of the institutional framework for preventing and developing early response to isolated pockets of risks that could easily become contagious or viral.
Finance analysts say the impact of AMCON cannot be overestimated, as the services of the Corporation has been highlighted as one of the reasons the banks reported huge profits in their 2012 year end results.
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