AMCON To Lease Out Confiscated Assets As Economic Recession Bites Harder
Ahmed Kuru, AMCON Boss[/caption]
The Asset Management Corporation of Nigeria, AMCON, may soon start leasing out assets confiscated from companies in order to raise funds to run the agency’s operations, its Chief Executive, Ahmed Kuru, has disclosed.
AMCON, which was set up six years ago to manage non-performing loans in banks, “plans to sell the properties when the economy improves and the assets can attract fair value,” said the organisation’s boss.
Kuru in an interview revealed that AMCON may soon introduce a “real-estate investment scheme” by the end of 2016 so as to help the agency meet up with its bond repayment.
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“The agency is confiscating more assets than its receiving from its recovery efforts as businesses battle to sell products and generate cash.”
Following the 2009 crisis in the banking sector, AMCON acquired about 14,000 non-performing loans in banks at the cost of N3.9 trillion, bailing out ten banks faced with crisis, he said.
Kuru noted however that AMCON has no intentions to bailout banks any further as the agency is now focused on repaying a N5.2trillion outstanding bond within the next five years, adding that companies owing AMCON are finding it difficult to payback their loans due the drastic fall in crude oil prices and the dwindling foreign-exchange supplies.
“We are in the second phase, which is redemption of our debts, not bailing out banks
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“We are not in the perpetual business of bailing out banks.
“Our activity here is directly linked to the economy. The combination of the economy picking up for the banks and also for the obligors will help AMCON meet its objectives and wind down in 2023 as planned,” he said.
Recall that The WHISTLER earlier reported that Chief Executive Officer of AMCON revealed that the biggest challenge facing the organization today is how to pay off its N5.6 trillion liabilities, which also include bonds held by the Central Bank of Nigeria.
