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AMCON Begins Sale Of Debtors Assets, Engages Valuers To Evaluate Properties

By on December 13, 2011

The Asset Management Corporation of Nigeria (AMCON) may soon commence sale of assets of defaulters as it has engaged 70 professional valuers to determine the appropriate value of assets and properties of borrowers transferred to the bad-assets company through loan-purchase agreements with banks.

Speaking during the inaugural visit of the House of Representatives Committee on Banking and Currency to AMCON’s office in Lagos, AMCON managing director, Mr. Mustapha Chike-Obi, said the engagement of professional valuers to evaluate all the properties, spread across the country, was part of the Corporation’s commitment at ensuring that its assets were managed and disposed off in a transparent process that extracts optimal returns for the tax payers.

AMCON has invested N3.14 trillion ($19.6billion) so far in the purchase of non-performing loans and recapitalisation of banks. With the bad debts taken over by the Corporation, it now has assets spread across the country; including real estate properties and shares that were used as collateral for loans.  AMCON also has shares in nearly all the banks in the country and several quoted companies.

Chike-Obi in a statement explained that AMCON’s assets were primarily locked in the bad loans that it purchased and such assets would be realised upon enforcement of the loan agreements.

He however, pointed out that AMCON usually engage and advise every debtor to explore possible ways of resolving the bad debt through loan restructuring and payment rescheduling. He noted that the corporation only foreclosed assets of borrowers who were not willing to pay.

According to him, the corporation now has some 9,000 loans under its purview and it has developed the institutional capacity to manage these efficiently in the best interest of the general public, whose funds formed the basis of establishment of the Corporation.

Outlining the administrative structures and operations of the Corporation to the lawmakers, Chike-Obi reiterated the commitment of AMCON to open and transparent administration, stressing that AMCON will always respond positively to enquiries from the lawmakers and the general public.

“We understand the need for legislative oversight and we will always respond positively. You don’t have to wait for formal occasions before asking questions, AMCON can be reached anytime so that we can provide answers to your concerns and help us pass these to your various constituencies,” Chike-Obi said.