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NDIC says will recover N700bn Heritage Bank loans, no need for panic

Things to know about the Heritage bank crises

… 99% of depositors have less than N5m total balances

The Nigerian Deposit Insurance Corporation (NDIC) has vowed to recover all the loans owed Heritage Bank totaling about N700bn.

Bello Hassan, NDIC Managing Director gave the assurance on Wednesday, two days after the Central Bank of Nigeria (CBN) revoked the bank’s Licence citing poor financial performance which could affect the country’s entire financial system.

CBN had said it’s decisive step to revoke the Licence relied on Section 12 of the Banks and Other Financial Act (BOFIA) 2020, a development which has raised fears among the bank’s customers, stakeholders, and the general public.

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But at a press conference in Abuja, Hassan assured the bank’s customers and the public that there was no need to panic.

He said based on preliminary assessment of the bank’s books, the amount of depositors fund put at N650bn coupled with the N700bn anticipated loan recovery should be able to cover verified all deposit insurance.

He said the NDIC has already commenced the process of repaying depositors of the bank who he assured will be settled within one week as against the 30days as stipulated by law.

“From our preliminary assessment, we have found out that Heritage Bank has N650bn deposits and loans is about N700bn and if we recover this amount, no depositor will lose their deposit

“We assure depositors that there is no need to panic and tbat they will get their money bank,” Hassan assured.

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The NDIC as the legally approved liquidator is expected to pay Heritage bank Customers an insured limit of N5m according to its recently reviewed guidelines.

Hassan reassured that the corporation is in a position to handle this since about 99.9 per cent of the bank’s 2.3 million depositors have less than N5m as deposits.

He also disclosed that only about 4,000 depositors of the bank have about N5m and above.