The management of Unity Bank Plc plans to invite the Economic and Financial Crimes Commission to help the bank recover over N40bn debt from customers that have been failing in fulfilling their loan obligations.
Henry Semenitari, managing director of the bank, who spoke to newsmen in Abuja on Thursday as he attended to customers during the 2014 Customers’ Week, also disclosed that the bank has started allotting shares to shareholders who subscribed to the bank’s recent rights issue.
As a first step to recovering the debt overhang, the bank has published a warning to the defaulting customers and plans to follow it up with the publication of their names as well as the staff that were responsible for the loans.
Semenitari said, “Historically, it was really bad but we have come up with a strategy. For the first time in the history of the bank, we have a very dedicated recovery team headed by someone at the general manager level and spread across regions.
“That is why you saw an advertisement in the press telling all debtors to come and make good all their accounts in two weeks. The truth is, in two weeks, if they refuse to show up, their names and amount owed the bank will all be published, including staff who were involved, whether ex or current staff.
“The value of the debts is in excess of N40bn; about N40bn to N50bn with the interests un-serviced over the years. We have said that we will do everything within the law and I think EFCC is an acceptable arm of the law to address your debt; so we will do that.
“There will be negotiations, of course. And whenever you negotiate loans, discounts come in; as long as you are not discounting at the expense of the bank. The issue of interest is in the inability of the customer to pay; that’s why penal rates come and penal rates are legal. If you don’t service your debts for x period of time, penal rates come in.”
Semenitari said when the current management took over the running of the bank in January, the immediate priority was to address capital inadequacy of about N40bn and this was done through rights issue that was oversubscribed.