Debtors Forfeit N264bn Worth of Properties As AMCON Retrieves N759bn Debt

Debtors Forfeit N264bn Worth of Properties As AMCON Retrieves N759bn Debt

 

The Asset Management Corporation, a body established by the government to buy bad debts from banks, have retrieved a total of N759bn from debtors.

This was disclosed in a new report released by Central Bank of Nigeria on Wednesday.

According to the report, some of the debtors were made to forfeit properties worth N263.73bn.

The body, which was also established to ensure stability in the financial sector, retrieved N89.97bn for the 2018 financial year from asset sales and credit repayments, bringing its total recoveries from inception to N759.05bn as of December 2018.

A breakdown of the report indicated that the recoveries made consisted of cash worth N366.85bn; shares forfeiture of N128.47bn; and property forfeiture of N263.73bn.

The report from the apex bank went on to further reveal that the carrying value of AMCON’s liabilities increased from N4.53trn in June 2018 to N5.43trn as of December 2018, as a result of  the corporation’s investment of N898.45bn in Polaris Bank Ltd.

According to the CBN, the carrying value of AMCON assets, net of impairment, increased from N731.55bn at the end of June 2018 to N769.87bn as of December 2018.

It said, “AMCON’s N5.43trn liabilities were projected to be covered by the Banking Sector Resolution Cost Trust Fund and the corporation’s internal credit recoveries and asset sales.

“Contributions to the BSRCTF by the CBN and 15 participating banks for 2018 were valued at N228.28bn.

“The recoveries generated by AMCON as well as the contributions to the BSRCTF were used to repay the corporation’s debt obligations, which fell due in December 2018.”

The CBN noted that there was an improvement in banks’ non-performing loans ratio from 12.45 per cent at the end of June 2018 to 11.67 per cent at the end of December 2018.

It said the total NPLs stood at N1.79trn at the end December 2018, compared with N1.94trn at the end of June 2018.

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Source: Debtors Forfeit N264bn Worth of Properties As AMCON Retrieves N759bn Debt