Nigeria creates agency to clean up bad bank debts

Nigerian President Goodluck Jonathan has approved, recently, the creation of a new government agency to buy out bad debts from the banking system.

The move aims to solve the country's financial crisis by absorbing some of the estimated US$10bn of bad loans that rocked its banking system in 2009. During that time the government was forced into a four billion dollar bail out of Nigeria's nine biggest banks. The new Asset Management Corporation of Nigeria (Amcon) will buy bad debts from banks and replace them with government-guaranteed bonds.

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