The CBN is causing a lot of concerns with its new plans
The desire by the Central Bank of Nigeria to publish names of
chronic debtors in the banking sector is now a cause for concern.
With less than two weeks to the expiration of the August 1, 2015, deadline that the Central Bank of Nigeria (CBN), gave banks to publish names of chronic debtors, concern
is growing in industry circles that the exercise could lead to
lawsuits, thereby making it harder for lenders to recover their funds.
Findings
reveal that as most banks are finalising arrangements to go ahead with
the publication of the names of recalcitrant debtors, such borrowers are
also raising an alarm that the exercise could negatively affect the
economy.
A press statement released by the Lagos
Chamber of Commerce and Industry (LCCI), urged banks not to proceed with
the publication as the debtors who defaulted in the repayment of their
loans due to factors that could be linked to ill-thought out government
policies.
The Chamber said:
“It is important to avoid sweeping generalisations and examine the context of default on a case by case basis.
There are varying causal factors for loan default, which has to be taken into account in matters of this nature.”
The
Federation of Construction Industry (FOCI), recently faulted the
planned publication of the debtors’ list, arguing that its members owed
banks because they, in turn, were owed over N500 billion by the Federal
Government, a development, it said, had resulted in many construction
firms in the country being close to shutting their shops.
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