Fidelity bank banner UBA banner
Etisalat vs Banks: CBN, NCC intervene to save jobs, prevent asset stripping

By News Express on 24/06/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 634


Following the deepening crisis between Etisalat and a consortium of 13 Nigerian Banks over a syndicated loan of about US$1.2 billion granted the telecom company by the banks, the Central Bank of Nigeria (CBN) on Friday said the apex bank and the Nigeria Communications Commission (NCC) decided to intervene in the crisis in order to prevent job losses and asset stripping.

Confirming the intervention of the two regulators in the loan dispute, the CBN Spokesman, Isaac Okorafor said: “Although it should ordinarily not be the role of a regulator to decide how individual bad loans are resolved, the CBN believes that Etisalat is a systemically important telecommunications company with over 20 million subscribers that if not well handled, may have negative implications for the banking system itself.

He further explained that the CBN and NCC, sensing that banks might go ahead in the usual way and downsize the company’s over 4,000 staff, reached an agreement to intervene and implore the consortium of banks to be reassess its position in dealing with Etisalat.

Okorafor described some media reports insinuating high-handedness by CBN on the issue as “the height of mischief and insensitivity”, explaining that the collaborative move by the regulators was aimed at preventing job losses and asset stripping and to ensure that Etisalat remains in business and is able to pay back the loans.

According to him, the CBN and the NCC, in the coming days, will meet with the syndicate of banks and the IHS Towers, the tower managers and the equipment suppliers, in order to achieve what he termed “a win-win outcome” for all stakeholders.

It will be recalled that Etisalat has been embroiled with a consortium of 13 Nigerian banks that gave it a facility of about US$1.2 billion, on which the company has been unable to meet its repayment obligations in line with agreed terms of the facility.

Given the inability of Etisalat to come to an acceptable agreement with the banks, the largest shareholder in the company, Dubai-based Mubadala Development Company of the United Arab Emirates, has now pulled out of the company as well as the ongoing negotiations, leaving only their local partners, led by Hakeem Belo-Osagie, to carry the burden.

It was based on the attempt of the banks to take over the company that the financial and telecommunications regulators have moved in to intervene and forestall down-sizing and asset stripping

Source News Express

Posted 24/06/2017 01:08:04 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
Arsenal dazzles in Champions League opener

NNPC fails to remit $1.48bn into Federation Account...

I was never appointed by Okowa says UPU...

France to invest $76m in African tech startups...

Impeachment fever spreads to America: Obama could be...

PTCIJ announces launch of UDEME, pledges to shine...

Nokia workers in Nigeria down tools

Terrorism: U.S. calls for more training for Nigerian...

Breaking News: GUNMEN ON RAMPAGE IN KADUNA, 4...

N185m Bribery: Court admits fresh exhibits against former...

Imo Governor Rochas Okorocha to build school for...

British Military trains Nigerian Air Force personnel

 

Latest News Meet Nollywood’s most eligible bachelors •What's keeping them from saying 'I do'? Bose wan do oyibo work FG to establish 2 news banks Oshiomhole, Saraki at war over bribery allegation Bribery Scandal: Ex-APC spokesman threatens to publish names of politicians who allegedly gave Oshiomhole money NLC dares governors over N30,000 minimum wage Why El-Zakzaky can’t be released now — El-Rufai How we stopped Okorocha from short-changing Imo pensioners — Durueke Kidnappers demand N15m on Zamfara twins, vow to kill one if payment not made on time Wike probes Amaechi over alleged N36bn contract scam ASUU, FG meeting ends in deadlock Why elections must be credible — INEC Chairman

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (420,812 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (389,860 views) Shameless Genevieve Nnaji exposes breasts in public (322,741 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (271,415 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (244,001 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (227,427 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (208,938 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (190,404 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (175,766 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (168,514 views) Lagos plane crash: Journalist releases victims’ names (164,983 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (151,907 views)

 

Zenith Zero Balance First Bank banner

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (72) Business & Economy (3,794) Business Verdict (54) Columnists (963) Complaints & Requests (94) Enterprise & Opportunities (208) Entertainment (566) Features (669) Global Business Monitor (309) International (2,684) Interview (166) Live Commentary (28) Love Matters (146) Maggie's Blog (35) News (40,581) Opinion (1,140) Pidgin (13) Politics (7,737) Religion (899) Sports (1,773) Stock Watch (35) AMA & Al Jazeera Global Update

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera