The Chief Executive Officer, CEO, of Asset
Management Company, AMCON, Ahmed Kuru, has disclosed that the agency may lease
out seized assets to raise funds for its operations.
AMCON may opt for the real-estate scheme by
the end of the year if it’s unable to generate funds for the repayment of its
bond payment, Vanguard reports.
The agency was created six years ago to take
on non-performing loans in banks and rescue the nation’s banking industry from
systemic collapse.
According to Kuru,
“It plans to sell the
properties when the economy improves and the assets can attract fair value.
“The agency is confiscating more assets than
its receiving from its recovery efforts as businesses battle to sell products
and generate cash.”
Stressing that companies that owe AMCON are
struggling to off-set their debts due to the slump in crude prices that has
crippled foreign-exchange supplies and the country’s economy, Kuru said the
agency has no plan to rescue banks as it’s focused on repaying the N5.2trillion
outstanding bond in the next nine years.
He said AMCON incurred about 14,000
non-performing loans at the cost of N3.9 trillion in a government-led bailout
of ten banks following the 2009 banking crisis.
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