CBN To Publish Names Of ‘Chronic’ Bank Debtors

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CBN Governor, Mr. Godwin Emefiele

The Central Bank of Nigeria on Thursday expressed deep concerns about the growing amount of Non-Performing Loans in the books of Deposit Money Banks and said it would publish the names of chronic debtors.They also decided to stop the serial debtors from buying foreign currencies at the official interbank foreign exchange market.

Also to be stopped from buying foreign currencies, according to her, are members of the board of directors of debtor companies as well as their subsidiary firms.

She recalled that the Asset Management Corporation of Nigeria had spent a fortune to buy toxic assets from the banks’ books in the past and that it was important to stage timely interventions to forestall a repeat of past mistakes.

Martins said, “So, it was decided that going forward, one thing that we will do is to stop them (chronic debtors) from getting access to foreign exchange. Another thing that we also considered doing 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.