The Asset Management Corporation of Nigeria will on December 31 redeem the N1trn series one, two, three and four bonds held by institutions outside the Central Bank of Nigeria.
Already, the amount according to the Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, had been received by the apex bank from the corporation.
The governor said by October next year, additional N1trn bond for series five would be redeemed by AMCON.
Sanusi spoke at the apex bank’s headquarters on Friday in Abuja during the signing of an agreement between both institutions that would pave the way for the redemption of AMCON’s indebtedness.
Sanusi signed on behalf of the CBN while the Managing Director of AMCON, Mr. Mustafa Chike-Obi, signed on behalf of the corporation.
The governor said the agreement was a major milestone in the resolution of the banking sector crisis which began in 2009.
That crisis, which led to the sacking of the Managing Directors of eight Deposit Money Bank for gross mismanagement also brought about the setting up of AMCON to help clean up the balance sheet of the banking sector.
Sanusi said that having issued bonds of about N5.7trn that enabled AMCON to put money into the balance sheet of banks thus improving their liquidity, there is need for the corporation to begin the redemption of these bonds.
He said, “The N5.7trn includes interest component, the amount AMCON owe is N3.8trn. Some of the money will come from the sale of the underlying assets by AMCON.
“We are at a point where AMCON balance sheet has enabled them to raise enough money to pay for this bond
“Out of the N5.7trn worth of AMCON bond, on December 30 AMCON is going to cancel by paying off N1trn series one, two, three and four bond of all institutions that is held outside the central bank.
“In October next year, AMCON is going to write off another N1trn which is series five held by bank and other institutions.”
When this is done, the governor said the only creditor to AMCON would be the CBN.
Copyright PUNCH.
No comments:
Post a Comment