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AMCON appoints agents to recover bad loans

By on May 7, 2016

The Asset Management Corporation of Nigeria has concluded the appointment of Asset Management Partners to help it resolve the over 6,000 accounts with loan balances of N100m and below.

The AMPs are firms with specialist skills required to ensure debt recovery and resolution; and offer banking, legal, valuation and accounting services.

Speaking at the induction of the firms in Lagos on Thursday, the Executive Director, AMCON, Mr. Kola Ayeye, who represented the Managing Director/Chief Executive Officer, Mr. Ahmed Kuru, said collaborating with the AMPs had become necessary because the corporation had over 12,000 loans of various sizes cutting across many sectors that had not been resolved six years after AMCON was established.

According to him, AMCON’s staff strength of approximately 300 is unable to handle the task of debt recovery alone and needs a strategic approach to improve coverage and results.

Ayeye explained that the desire to strengthen recoveries was the rationale for appointing the AMPs, stating, “That is the reason we are all here today to work together in resolving the over 6,000 accounts with loan balances of N100m and below. We are convinced that the AMP programme is key to the success of AMCON, and we will give you all the necessary support to make you succeed in this exercise.”

While reminding the firms that the job of debt recovery was never an easy task, he promised that AMCON would share with them a set of rules, practices and processes, which would help each AMP to deliver optimally, adding, “We will provide you with a feedback channel that will attend to all your professional needs and also provide necessary guidance.”

The executive director urged the AMPs to take the initiative seriously because AMCON would nurture its transformation into the preferred model for recovery and resolution of non-performing loans in the banking sector and financial services industry.

A statement from the Corporate Communications Department of AMCON said the AMPs would, among other things, work with the corporation in tracing, identifying and locating obligors with the intent to resolve their outstanding indebtedness.

They will also be involved in tracing, identification and location of assets of obligors (both pledged and unpledged) to enhance the Eligible Bank Assets value and achieve set recovery objectives, negotiation of settlement and restructuring terms with identified obligors in line with approved guidelines.