By Nse Anthony-Uko,
ABUJA, (Sundiata Post) — The Chairman, House of Representatives Committee on Banking and Currency, Sir Jones Chukwudi Onyereri has said the House will not be moved into supporting deceptive plot orchestrated by some people to lure Asset Management Corporation of Nigeria (AMCON) to purchase new debts from Deposit Money Banks (DMBs) in the country.
Hon. Onyereri who addressed his colleagues in Enugu State at the opening of a retreat for lawmakers declared open by the Enugu State Governor, Hon. Ifeanyi Ugwuanyi, said the members argued that it would not be the right decision for the country considering the state of the economy, which is on the pathway to recovery after sliding into recession.
He said: “We are also aware that some economists are clamouring for AMCON to buy more toxic assets from the Eligible Financial Institutions (EFIs) in view of the very high level of the non-performing loans that are worse than the 2009 experience and far above the regulatory threshold. We wish to sound a note of warning that this Committee will not; I repeat will not support any such move, at least not at a time like this in the history of our economy.”
He said the lawmakers are happy that AMCON as an interventionist institution of the Federal Government has performed above board since it was created, but are worried that the corporation is often constrained by institutional and legal stumbling blocks from achieving optimum results.
He said that was why the House in 2015, amended certain parts of the AMCON Act to further strengthen the institution – which included the establishment of the resolution sinking fund.
Managing Director/Chief Executive Officer of AMCON, Mr. Ahmed Kuru disclosed to the committee that the Corporation’s recent assessment of obligors as at December 31, 2016 identified 350 accounts with a current exposure of N2.5 trillion that represent about 80 per cent of AMCON’s total obligor debt.
“AMCON has also repositioned its debt recovery approach to strengthen legal and credit restructuring units to collaborate on the aforementioned 350 accounts termed “defaulters”; enhance the restructuring and turnaround.
