Nigeria central bank sees interest in all rescued banks

Tue Jul 27, 2010 5:47pm GMT
 

By Randy Fabi

ABUJA (Reuters) - Nigerian Central Bank Governor Lamido Sanusi said on Tuesday there was still interest from potential investors in all of the banks rescued in a $4 billion bailout last year.

"I can confirm that there are parties interested in combining with each and every one of the banks," Sanusi told a news conference in the capital Abuja.

"But at this point it is about interest. Whether we will link up these deals depends on the negotiations ... So far things are looking positive," he said.

Nigeria's central bank last year injected $4 billion into nine banks judged to be so weakly capitalised they posed a risk to the system in sub-Saharan Africa's second biggest economy.

A tenth bank was judged to have insufficient capital but received no capital injection because it was deemed to have a healthy liquidity position.

The regulator is seeking investors to recapitalise all 10.

The central bank has said a number of foreign banks and private equity companies have expressed interest in the rescued lenders. South Africa's First Rand, Standard Bank and Nedbank

have all said they are interested in investment opportunities in Nigeria.   Continued...

<p>Nigeria's central bank governor Lamido Sule Lamido speaks at conference on banking reforms in Nigeria in Lagos, February 11, 2010. REUTERS/Akintunde Akinleye</p>

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