28th June, 2010
Nigerian Central Bank Governor Lamido Sanusi said he expects three international lenders, a number of private equity houses and local lenders to submit offers for banks bailed out by the Central Bank by mid-July, Bloomberg reported today The interested parties are undertaking “detailed†due diligence, the Central Bank governor said.
Nigeria imposed new management and injected funds into eight banks last year in a bid to nurse them back to health and find potential buyers.
“Weâ€
“Thereâ€
“Securing a future for Union Bank, Oceanic, Intercontinental, PHB and Afribank is the priority as these banks are the most “systematically important†to Nigeria,â€Sanusi said.
The Central Bank is waiting for presidential approval for a law that will create the Asset Management Corp. of Nigeria, a government entity that will buy bad debts from the banking sector, using funds raised through government-guaranteed local bond issuance.
The bonds will be issued on a deal by deal basis and the presidential approval is expected early next month, Sanusi said.
Sanusi said he sees no reason now for a change in the benchmark interest rate. “A rate cut at this particular moment in time doesnâ€
“There is no compelling imperative at this point to review the interest rate stance,†he said.
Sanusi said the next monetary policy meeting will take place on July 5.