Omoh Gabriel
7 November 2009
UNION Bank appears to be on its way out of the woods, according to indications.
This is because the bank has recovered N31 billion of the N70 billion that eroded the bank's shareholders funds that led to the CBN removal of the former management of the bank.
Giving an update on the loan recovery efforts of the bank to newsmen in Lagos on Friday, the bank MD, Mrs. Funke Osibodu said "the bank has recovered N 31 billion and that the bulk came from
Transcorp Plc, which paid N22.1 billion.
Out of the funds recovered from Transcorp, she explained, N600 million was in cash from government, while the remaining was in one year promissory notes, earning interest of 8.6 per cent per annum for the bank.
She said that the debt recovery effort is a joint task between the Economic and Financial Crimes Commission, EFCC, the bank staff and other law enforcement agencies. He said no amount of the recovered funds can directly be attributed to the effort of the EFCC as the recovery is a joint effort. He said some of the recovery were done in the bank's premises or at the EFCC's office.
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