Etisalat Nigeria is indebted to 10 consortium of banks the sum of over $1.2 billion, and the Manager of Central Bank of Nigeria, Mr Godwin Emefiele gave directives to the banks to stop pressuring the telcos.
A source revealed that CBN further said:
Reports from the source further stated that the banks revealed a lot of information during their presentation which include the fact that they had no intention of taking over Etisalat Nigeria, as had been widely rumoured.
The banks also felt that Emirates Telecommunications Group Company (Etisalat Group), Abu Dhabi, which holds a 45 percent stake in the Nigerian subsidiary, had announced on Tuesday at the Abu Dhabi Stock Exchange of its intention to pull out from its Nigerian operations without meeting its obligations which amounted to abandoning the company’s monumental obligations in Nigeria which include:
– $1.2 billion syndicated and bilateral loans approved by 13 Nigerian banks, now delinquent;
– Taxes and levies due to the Federal Government of Nigeria and regulatory agencies; and
– Other third-party creditors (i.e. Vendors, service providers and contractors);
The banks (which are; Zenith Bank, GT Bank, First Bank, UBA, Fidelity Bank, Access Bank, Ecobank, FCMB, Stanbic IBTC Bank and Union Bank) also gave information to the CBN that while other network operators sold their towers and utilized the entire sales proceeds to repay their loans, Etisalat Nigeria in 2014 sold its towers but did not apply the sales proceeds to repay its loan. To investigate the management of Etisalat Nigeria over the utilization of the $1.2 billion facilities, the banks are also seeking the federal government’s intervention.
Etisalat, in response blamed the economic downturn witnessed in the country in 2015 and the sharp devaluations of the Naira for its inability to offset its $1.2b loan. It was also reported that Etisalat Nigeria has paid over 40% of the actual loan ofj $1.2 billion.“The actual outstanding on the Etisalat loan is about $500 million (N165 billion).”
The company also disclosed that it was not being investigated by the Economic and Financial Crimes Commission (EFCC) as widely reported in the media.
A source revealed that CBN further said:
"Just like the NCC has warned that Etisalat’s license is not transferable, the leadership of the CBN from all indications will not allow any hostile takeover without its approval.
They (the banks) cannot do that by just taking a decision like that. Etisalat is not transferring any licence to any consortium of banks. We are going to resolve it amicably. The CBN and NCC are working towards resolving it amicably."
Reports from the source further stated that the banks revealed a lot of information during their presentation which include the fact that they had no intention of taking over Etisalat Nigeria, as had been widely rumoured.
The banks also felt that Emirates Telecommunications Group Company (Etisalat Group), Abu Dhabi, which holds a 45 percent stake in the Nigerian subsidiary, had announced on Tuesday at the Abu Dhabi Stock Exchange of its intention to pull out from its Nigerian operations without meeting its obligations which amounted to abandoning the company’s monumental obligations in Nigeria which include:
– $1.2 billion syndicated and bilateral loans approved by 13 Nigerian banks, now delinquent;
– Taxes and levies due to the Federal Government of Nigeria and regulatory agencies; and
– Other third-party creditors (i.e. Vendors, service providers and contractors);
The banks (which are; Zenith Bank, GT Bank, First Bank, UBA, Fidelity Bank, Access Bank, Ecobank, FCMB, Stanbic IBTC Bank and Union Bank) also gave information to the CBN that while other network operators sold their towers and utilized the entire sales proceeds to repay their loans, Etisalat Nigeria in 2014 sold its towers but did not apply the sales proceeds to repay its loan. To investigate the management of Etisalat Nigeria over the utilization of the $1.2 billion facilities, the banks are also seeking the federal government’s intervention.
Etisalat, in response blamed the economic downturn witnessed in the country in 2015 and the sharp devaluations of the Naira for its inability to offset its $1.2b loan. It was also reported that Etisalat Nigeria has paid over 40% of the actual loan ofj $1.2 billion.“The actual outstanding on the Etisalat loan is about $500 million (N165 billion).”
The company also disclosed that it was not being investigated by the Economic and Financial Crimes Commission (EFCC) as widely reported in the media.
How long will this last?
ReplyDeleteBlame it on economy recession! God help them
ReplyDeleteLoan cum debt.
ReplyDeleteNice update techpaded