Friday, 10 April 2015

CBN To Publish Names Of Chronic Debtors

The Central Bank of Nigeria CBN, will as part of several measures aimed at recovering the amount of loans in the industry, which is put at 13 trillion Naira, be publishing names of those the bank describes as “chronic debtors.”

This was made known by Mrs. Tokunbo Martins, the CBN’s Director, Banking Supervision. She said those the bank describes as “chronic debtors” would be published alongside the companies they represent, their directors, subsidiaries and other associates.

Mrs Martins was speaking at the end of the 321st Bankers' Committee meeting in Lagos.

“The CBN has managed to keep the banking industry safe and sound in collaboration with all members of the Bankers’ Committee.

“But some data shows that it is increasingly becoming difficult for some debtors to pay up their loans. So it was decided that going forward, one thing that we may do is to stop them from getting access to foreign exchange.

“Another thing that we also considered going forward is to publish the names of the borrowers that refuse to pay up. This is to ensure the continuous safety and soundness of the banking industry.

“It is not all debtors, it is the bad and chronic debtors, those ones that have deliberately refused to pay, those are the ones we are talking about.”
Martins, who put the current banking industry’s NPLs at 3.3 per cent, maintained that the central bank wants to ensure that the figure does not exceed the five per cent limit,” the CBN Director said.

“Total loans in the industry are in the region of N13 trillion. Right now, we have not reached the upper limit of five per cent on NPLs, but we don't want to get there. That was why we decided that we need to come out with this measure.
“It is not only the names of the bad debtors, the directors, the subsidiaries and every member of the board that would have their names published,” she added.

Source: Thisday

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