Mustapha Chike-Obi” title=”Dr.
Mustapha Chike-Obi” width=”400″ height=”240″ class=”
The Managing Director of the Asset Management Corporation of Nigeria (AMCON), Dr.
Mustapha Chike-Obi, on Monday revealed plans by the corporation to off an additional N1trillion of its debts by October.
Chike-Obi spoke at a one-day public hearing on the AMCON Act, 2010 (Amendment) Bill, 2014 organized by the Senate Committee on Banking, Insurance and other Financial Institutions in Abuja.
He also explained how the agency applied the sum of N5.676 trillion it raised from government bonds in 2010.
He added that the agency had recovered over 50 per cent of the non-performing loans it acquired at inception.
Chike-Obi said, “Today, we have recovered over 50 per cent of the non-performing loans we acquired and not the 15 per cent that has been thrown around in the press recently.
“I want to say that these were debts that the banks had given up on.
Some of those debts were seven to 10 years old.
“Additionally, in December 2013, because of the huge success in restructuring and recovering debts, we have been able to pay off N1trillion of our debts well ahead of schedule.
“We also plan to pay off an additional N1trillion of debts in October 2014 which will reduce AMCON’s indebtedness by 30 per cent in the first four years of operation.”
He told the lawmakers that the N5.676 trillion was used to purchase Eligible Bank Assets (EBAs), recapitalization of Enterprise, Keystone and Mainstreet Banks and injection of capital into five intervened banks.