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Nigeria : CENTRAL BANK to provide N50B for AMCON sinking fund.

Rep. Jones Onyereri, the Chairman, House of Representatives Committee on Banking and Currency, has announced that the Central Bank of Nigeria (CBN) would provide N50 billion for the Assets Management Corporation (AMCON) sinking fund.

Onyereri (PDP-Imo) said this at a one-day public hearing on a bill to revise the AMCON Act 2010 arranged by the committee in Abuja on Monday.

The fund serves as a safety net for AMCON to ensure it fulfills its obligations arising from debt securities released by it.

It also protects the tax payer from obligations occasioned by financial mishandling by the banks.

Onyereri (PDP-Imo) said that commercial banks in the country would be asked to offer an amount equivalent to 50 basis points of their total assets to the fund.

He said : "The key component of the amendment bill relates to setting up of a sinking fund or Resolution Cost Fund. It basically obligates a bank to contribute annually an amount equivalent to 50 basis points of its total assets to the fund and CBN is to contribute N50 billion to the fund."

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Publication:Mena Report
Geographic Code:6NIGR
Date:Sep 25, 2013
Words:191
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