Welcome To NaijaSky


Author Central Bank of Nigeria explains stakeholding in N5.7 trillion  (Read 708 times)

Description:

0 Members and 1 Guest are viewing this topic.

Offline one9ja

  • Hero Member
  • *****
  • Posts: 953
  • Gender: Male
    • Share Post
CBN explains stakeholding in N5.7 trillion AMCON bond

THE Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, said that out of the N5.7 trillion bonds, the apex bank is holding N3.6 trillion, under the Special Class bond, which it used as a risk mitigation strategy.

Sanusi made the disclosure in Lagos, at the first National Risk Management conference, with the theme: “Our Ever-Changing Risk Context: New Channels, New Risks.”

Sanusi explained that AMCON, as an agency under the regulation of CBN, did not just purchase non-performing loans, but that it was a measure to fill in the hole that existed because of theft and recklessness in the financial system, leaving a negative networth in many financial institutions.

“The unique thing we did, in recognition of the hole that was created was to have a structure that prevented the loan taken by AMCON from being borne by government and taxpayers and agreed with the banking industry that they will put in the money over 10 years.

“Today, AMCON has bonds with a face value of N5.7 trillion, with CBN holding N3.6 trillion value. This was not the original intent, but also part of the risk management.

“Many banks that got early bonds, did so when interest rate was seven per cent and by the time we completed the capitalization of the other banks, interest rate has moved up with about 500 to 600 basis points. This would have been huge erosion of the capital of those banks and that would have just thrown these banks back to where they were.

“So, CBN swapped the AMCOM bonds for Open Market Operations bills and other instruments that will not carry those market risks and we had N3.6 trillion out of N5.7 trillion. AMCON is expected to pay back N1.7 trillion by December this year or at least refinance it and N4 trillion next year,” he said.

Linkback: http://naijasky.com/finance-money-and-banking/1741/central-bank-of-nigeria-explains-stakeholding-in-n5-7-trillion/4994/

NaijaSky



Share via facebook Share via linkedin Share via twitter

clip
Attorney general of Nigeria queries central bank governor

Started by Isaac Adeniran

4 Replies
573 Views
Last post February 15, 2017, 10:35:38 PM
by Isaac Adeniran
xx
Who do you bank with in Nigeria

Started by Success Writer

0 Replies
861 Views
Last post June 04, 2012, 02:08:51 PM
by Success Writer
xx
Diamond Bank holds AGM

Started by Isaac Adeniran

0 Replies
854 Views
Last post April 22, 2014, 12:37:05 AM
by Isaac Adeniran
xx
Beware of bank fraudsters

Started by Olawore Abiodun Joel

0 Replies
704 Views
Last post October 20, 2015, 03:30:46 PM
by Olawore Abiodun Joel
xx
First Bank unveil products for youths

Started by omonaija

0 Replies
677 Views
Last post May 28, 2013, 06:32:24 PM
by omonaija
xx
International Private Bank Launches

Started by one9ja

0 Replies
718 Views
Last post May 27, 2013, 12:17:51 AM
by one9ja
xx
Bank of agriculture, ministry seal N3.5b pact

Started by Ade Omo Ade

0 Replies
778 Views
Last post May 26, 2013, 01:17:07 PM
by Ade Omo Ade
 
Name: Email:
Verification:
Type the letters shown in the picture
Listen to the letters / Request another image
Type the letters shown in the picture:
Nigeria Capital is Lagos or Abuja:
Four divided by two=tutu or two:
spelling of Blog is Blug or Blog:

Related Topics

  Subject / Started by Replies Last post
0 Replies
1945 Views
Last post February 25, 2013, 10:44:44 PM
by omonaija
0 Replies
513 Views
Last post August 24, 2016, 01:57:37 AM
by abejoye
4 Replies
573 Views
Last post February 15, 2017, 10:35:38 PM
by Isaac Adeniran