Recapitalisation: Wema, Unity banks get Sept deadline

By Emma Ujah, Abuja Bureau Chief
ABUJA—The Central Bank of Nigeria, CBN, has granted a three-month extension to Unity Bank and Wema Bank to recapitalize.  The original deadline which was June 30 has been moved to September 30, 2010.  

CBN said yesterday that the decision to extend the deadline was borne out of concerns expressed by members of the public.

The bank noted efforts of the boards of the two banks towards recapitalizing the institutions and said it was satisfied by the progress so far made.

CBN said it was optimistic that given the extent of work already done by the boards, the banks should be able to meet the recapitalization requirements at the end of September through a combination of capital injection and sale of toxic assets to the Assets Management Company to be set up.

The statement signed by the Head of Corporate Communications, Alh M.M. Abdullahi reads:

Our attention has been drawn to Newspaper reports expressing concern on the deadline of June 30, 2010 given to Unity Bank Plc and Wema Bank Plc to recapitalize.

We wish to inform the general public that due to unanticipated three months extension in timeline for setting up Asset Management Corporation of Nigeria (AMCON), the Central Bank of Nigeria has granted a three months extension for the two banks to recapitalize.

The Central Bank of Nigeria is fully abreast of the significant progress made by the boards of the two banks on their recapitalization and is satisfied with the efforts.

It is our hope that with the progress made so far, the two banks should be recapitalized by the end of September 2010 through the combination of sale of toxic assets to AMCON and injection of fresh capital.