German Firm to Acquire Union Bank Loans as CBN Activates Automatic Debit on Debtors' Accounts
- An international financial technology company is moving to take over non-performing loans in Union Bank
- BEREE and Union Bank signed an MoU at the German-Nigerian Business Forum in Berlin
- BEREE said it plans to inject about $40 million to refinance the non-performing loans
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A German-Nigerian financial technology company, BEREE, and its international finance partners have revealed plans to acquire some of Union Bank of Nigeria's distressed loan portfolios.
In a statement on Monday, November 27, 2023, the fintech firm said it signed a Memorandum of Understanding during the German-Nigerian Business Forum in Berlin, which may make the acquisition possible.
Source: Twitter
BEREE to refinance distressed loans with $40 million
Under the MoU, the fintech firm, in collaboration with its international financing partners, revealed that it would explore the acquisition of distressed loan portfolios from the Nigerian bank, with a potential investment cap of $40 million, focusing on refinancing non-performing loan portfolios, especially those delayed in repayment or already written off.
Punch reports that Union Bank was delisted officially from the Official Daily List of Nigeria Exchange Limited and stated that it has adapted to the challenging economic environment in Nigeria.
The Statement reads:
"The ongoing economic pressures have necessitated increased flexibility for loan repayment plans, and BFREE, leveraging artificial intelligence, presents an innovative solution."
Union Bank's Executive Director, Joe Mbulu, said the bank is excited about the partnership with BEREE as it aligns with its dedication to finding innovative solutions to economic challenges.
"This collaboration signifies our dedication to finding innovative solutions to the economic challenges faced by our customers," Mbulu said.
CBN activates automatic debit orders on debtors accounts, other defaulters in commercial banks
Legit.ng reported that the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, revealed that over N10 trillion has been loaned to customers under various intervention schemes.
CBN data showed that between September and October 2022, the apex bank disbursed about N41.02 billion to several agricultural projects under the Anchor Borrowers’ Programme (ABP).
The total disbursement under the ABP scheme amounts to N1.07 trillion to about 4.6 million smallholder farmers growing 21 commodities nationwide.
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Source: Legit.ng
