350 persons owe 70% of bad bank debts of N2.1tn —AMCON

Economy Hot News Nigeria

The Asset Management Corporation of Nigeria (AMCON) has revealed that 350 debtors account for over N2.053 trillion, which is more than 70 percent of the total outstanding bank loans.

Ahmed Kuru, Managing Director of the corporation disclosed this on Monday at the 2021 retreat of the Senate Committee on Banking Insurance and other Financial Institutions with the management of AMCON held in Kaduna

Speaking on the theme: “AMCON Debt: Senate pushing for additional cooperation from CBN, NDI”, Kuru also revealed that the corporation has recovered around N1.48 trillion out of the N4.158 trillion due by bank debtors.

According to him although AMCON still has 7,902 outstanding obligors with a total outstanding loan of above N3.1 trillion the commission has recorded success despite challenges faced.

Kuru told the committee that AMCON was strongly battling with its debt recovery activities.

He said it was very difficult, particularly given AMCON’s peculiar situation, adding, that the commission still had 7,902 outstanding obligors with total outstanding loan of above N3.1tn.

According to him, 350 obligors alone account for over N2.05trillion, which is more than 70 per cent of total outstanding amount.

He said despite the efforts of the corporation, the economy and the banking sector were not growing at the expected rate, creating a huge gap in its recovery operations.

“All our action is geared towards settling our obligation with the CBN. After recovery and disposal, funds are paid directly into our CBN account.

“Recovery and disposal of assets have so far contributed above N1.27trillion towards settling our obligation. The economy and the banking industry are not growing at the expected rate thereby creating a huge gap in our recovery activities.

“At the recovery rate we are currently experiencing; we may not be able to cycle out even in the next five years. Additionally, the interest rate AMCON is shouldering on its bond to the CBN is making it difficult for the recovery rate to grow,” he added.

He, however, reaffirmed the commitment of the corporation to its mandate of loan and assets recovery, regardless of the difficulties encountered.

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