The President, Chartered Institute of Stockbrokers, Mr Ariyo Olushekun, says the recent forbearance package to stock broking firms has repositioned the firms for acquisition and merger.

Olushekun said yesterday that the package had positioned the firms to be bigger and stronger.

According to him, brokers are talking to themselves about merger, acquisition or recapitalisation to serve the capital market better.

"This is because the accounts of stock broking firms are much healthier and cleaner; firms that were affected by debts now have an opportunity to start afresh.

"The forbearance has restored confidence among investors; stock broking firms are now ready to form formidable entities and play their expected role in the capital market," he said.

Olushekun said that the market growth so far was partly due to the forbearance package.

He said that brokers had learnt their lessons from the downturn in the market in the last four years.

Olushekun said that the institute would continue to train and re-train its members to compete internationally.

Fifty four stock broking firms, with margin loans worth N8.948 billion, have benefitted from the forbearance package as at the end of January.

The federal government, in December 2012, announced a forbearance package of N22.6 billion for the margin loans of 84 stock broking firms as part of efforts to resuscitate the capital market. Dr Ngozi Okonjo-Iweala, the Minister of Finance, said that the bail-out was to remove the debt burden of stockbrokers and allow the brokers to fully re-invest in the capital market.

Okonjo-Iweala said that the debt overhang was dampening activities in the market.

She said that the forbearance would be accompanied by laws to discourage excessive borrowing by capital market operators in future.

NAN