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Loan freeze: AMCON urges CBN to revise list

BY Clara  Nwachukwu

Asset Management Corporation of Nigeria, AMCON, has advised the Central Bank of Nigeria, CBN, to revise the list of debtors, who are not qualified for further credit until otherwise directed, as some of the names on the list should not have been there.

AMCON, in a statement, however, confirmed that it “provided the list of its debtors to CBN in the course of its compliance with due administrative regulation,” adding that as at date of transmission to CBN, the list was accurate.

AMCON said: “Given changes that had occurred during the intervening period, certain names which ought not to have been on the list were circulated to the banks.  We have identified these names and have recommended to the CBN that they be removed accordingly. This list will continue to be updated whenever concrete settlements with AMCON are reached.”

The advice, AMCON said in a statement yesterday, followed what it referred to as objections by some debtors, on the list and the need to clarify issues on the subject.

However, the asset management company could not give further details on those who should be de-listed, but said that “there had been changes to the debt positions of few specific debtors to AMCON due to restructuring and/or repayments.”

Last week, CBN, regulator of the financial services sector, published the names of 113 companies and organisations which are not qualified for further credit facilities until they had settled their indebtedness to AMCON. Although industry sources revealed that the CBN list was actually much more than the 113 published, it could actually be in excess of 400.

The AMCON statement read in part: “We refer to the circular recently issued to banks by Central Bank of Nigeria, CBN, on the prohibition of further credit facilities to debtors, whose accounts had been assigned to AMCON.”

Soon after the publication, some of the debtors listed have since published paid advertorials on the status of their debts, while more are expected to follow in the days ahead.

Our source revealed further: “Many of those on the debtor lists are even going to take wrap around in major newspapers to clarify their status in the days ahead,” even as AMCON noted that “the publication of the list by newspapers was unauthorised as it was intended for the information and use of the banks only.

“AMCON in line with its statutory objective is committed to ensuring that every indebtedness that had culminated in the hitherto unhealthy state of the Nigerian banking industry was repaid irrespective of the personalities involved, and this policy is critical to the attainment of this objective,” the statement added.


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