The Asset Management Corporation of Nigeria (AMCON) on Friday restated its commitment to support the country’s economy by helping businesses to grow.
Mr Ahmed Kuru, Managing Director, AMCON made the assertion at a media parley in Lagos.
Kuru recalled that AMCON was set up during the 2008/2009 global recession to assist businesses in the country cushion the shocks from the recession; a feat, he said, was successful.
“The global recession of 2008/2009 informed the setting up of AMCON.
“AMCON has achieved the objective because Nigeria have come out of that recession,’’ Kuru said.
Kuru noted that it was important to explain to the media the objective of AMCON to inform the business community of its critical role in supporting the growth of the economy.
According to him, some organisations erroneously believe that AMCON was out to force them out of business, thus maligning it in the media.
Kuru said the task of loan recovery from ailing businesses was huge, adding that it was a burden it was prepared to bear to salvage the economy and support businesses to remain afloat.
“Recovery is a very tedious task.
“Reluctance on the part of debtors is inhibiting debt recovery,” Kuru said.
The AMCON boss acknowledged the key role the judiciary was playing in the adjudication of cases relating to debt recovery.
He said that the corporation considered going to the court to recover loans as the last resorts.
He disclosed that the corporation recovered N644 billion in 2015, while strengthening the companies it bought into with N324 billion.
He explained that the situation was so because many of the companies were under the weather while some had gone beyond redemption.
Kuru said that the challenges in the global and local economy was stifling its efforts at debt recovery as shown in the depreciation of some stocks exchanged for money and the volatility in the forex market.
Consequently, Kuru said that the corporation had to outsource some work to some asset management partners.
He mentioned that outsourcing would help to manage defaulting companies, thereby creating employment opportunities.
To achieve this, Kuru added that AMCON had created a real asset investment programme, adding that it would sell forfeited assets when the economy was favourable. Click to signup for FREE news updates, latest information and hottest gists everyday
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When AMCON takes over a bad debt from a financial institution, will that debt still continue to attract interest? If so, at what rate?
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