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AMCON Ends Banks Bail Out Stage with N2.78trn

By on November 8, 2011

The second stage towards the bailout process of banks by The Asset Management Corporation of Nigeria (AMCON) ends with a purchase of over N2.78tn total non-performing loans of banks on the face value from 21 banks at a cost of N1.16tn.

Investigation gathers that this acquisition represented 95 per cent of all outstanding non-performing loans in the banking industry. AMCON now has representative shares in all the 24 banks in the country and the corporation has commenced negotiations with the debtors with a view to recovering the debts.

At the end of the second phase, the corporation compelled certain banks, in consultation with the CBN, to systemically sell important loans to it.

Some of these loans include; loans of Zenon Petroleum, Seawolf Industries and Geometric Power Industries. h Zenon has N150bn; Seawolf, N100bn; and Geometrics, N25bn amongst others.

AMCON has now moved to the third phase, which involves the management of all acquired assets.