Posted by Grand News | 5 November 2018 | 1,016 times
Some experts have favoured the recent publication of list of debtors by the Asset Management Corporation of Nigeria (AMCON) as a way to boost the recovery of existing huge non-performing loan (NPLs) by the corporation.
Although mixed reaction had trailed the action by AMCON, especially its legal implication, some experts who spoke to THISDAY, however said the move by the corporation was a step in the right direction.
Former Managing Director, Unity Bank Plc, Dr. Mohammad Rislanudeen and a Professor of Finance and Capital Market at the Nasarawa State University, Keffi, Prof. Uche Uwaleke told THISDAY over the weekend that naming the debtors, including prominent Nigerians would be a game changer in its recovery drive.
According to Rislanudeen, the NPLs which stood at about five per cent when the debts were acquired by AMCOM in 2011, now averaged about 15 per cent, implying that more loans had gotten bad.
He said both AMCON and the debtor entities are currently in a dilemma-“because that chunk of money- over N4 trillion are tax payers’ money which was used rightly to ensure financial stability. And it’s the responsibility of AMCOM to recover these loans.”
In the same vein, Uwaleke posited that the publication of the list of debtors would go a long way to aid recovery of most of the debts that AMCON took over from distressed banks.
He added:” AMCON is meant to be a temporary resolution vehicle and therefore should be seen to be ready to activate its sunset clause any time soon.
“This is one of the steps it should be taking to recover the debts owed it in preparation for winding down.”
“This will help to reduce the high level of non-performing loans in the banking industry. So, I think the development bodes well for financial system stability,” he said.
No comments yet. Be the first to post comment.