By Daniel Idonor
ABUJA— PRESIDENT Goodluck Jonathan, yesterday, signed the Asset Management Corporation of Nigeria, AMCON, Bill into law, saying that the legal establishment of the corporation was in keeping with his Administration’s determination to ensure the stability of the nation’s financial sector and stimulate national economic recovery.

Jonathan said the AMCON law would help the administration ensure stability of the nation’s financial sector and stimulate the economy.

He said: “I sign this bill today in full recognition of the critical role that AMCON will play in achieving these two critical objectives for our economy.”

Speaking at a brief ceremony in the Presidential Villa, the President said that as soon as it becomes fully operational, AMCON would stimulate the recovery of Nigeria’s financial system from recent crisis by boosting the liquidity of troubled banks through buying their non-performing loans, helping in the recapitalization of banks in which the Central Bank of Nigeria, CBN, was forced to intervene and increasing access to restructuring/refinancing opportunities for borrowers.

The President added that AMCON would also boost confidence in the banks’ balance sheets and the nation’s credit and risk ratings, restore confidence in the capital markets and prevent continued job losses in the country’s banking industry.

He declared that the establishment of the national assets management company was a manifestation of the Federal Government’s commitment to safeguarding the interests of depositors, creditors and other stakeholders in Nigeria’s financial system.

President Jonathan who commended the Federal Ministry of Finance, the Federal Ministry of Justice, the CBN and the National Assembly for the effort they put into the preparation and passage of the AMCON Bill and expressed hope that its signing into law “will be an important turning point in our return to strong economic growth and financial system stability.”

President Jonathan noted that the law would restore confidence in the banks’ balance and risk ratings, restore confidence in the capital market and prevent continued job losses in the banking sector.

Governor of CBN, Lamido Sanusi, said the signing into law of the AMCON bill would give the apex bank the legal backing to affect the necessary clean up in the banking sector and restore confidence in the nation’s economy

Fielding questions from State House correspondents, after the signing ceremony witnessed by Olusegun Aganga, Minister of Finance, Bello Adoke, Attorney General and Minister of Justice and other top banking and government officials, Sanusi said: “So this set the stage for the final phase of the resolution of the banking crisis and this gives us the tool with which to clean our banks’ balance sheets and to make sure that the banks put the past behind them and move it to the next dispensation.

“The president basically re-affirmed the importance and commitment to cleaning up bank balance sheets and for restoring confidence in the capital market and returning the country to the path of growth.”

Sanusi who commended the collaborations “between the CBN, finance and justice ministries as well as the National Assembly for pushing through the debate to this stage” added that with the presidential assent, AMCON was ready to swing into action.

Aganga, in a similar interview said since the bill had been signed into law the government “now has the instrument to operate with” stressing that “the next step will be to establish the board, the management team and to star engaging the banks.”

He added: “We are now going to get into proper operation now that we get into. The legal framework is there, the president has signed it and we are ready to go”.