Regulatory Alerts2012-09-19 | BSD/DIR/GEN/AMC/05/048Prohibition of New Credit Facilities to Debtors of the Asset Management Corporation of Nigeria (AMCON)
The Central Bank of Nigeria, through its Banking Supervision Department, has prohibited all Deposit Money Banks from approving or disbursing new credit facilities to debtors whose loans were transferred to the Asset Management Corporation of Nigeria (AMCON) until they fully repay their agreed outstandings. This applies to individuals, organisations, and principal shareholders/directors of companies with outstanding loan amounts purchased by AMCON of N5 billion or more at the time of purchase. The list of affected borrowers provided by AMCON is attached to this circular. Banks found in breach will be required to make an immediate provision of 100% of total principal and interest outstanding in the account of the customer and related parties, along with any additional regulatory penalties decided by the Central Bank of Nigeria.