Ekiti govt issues ultimatum to 9 microfinance banks on loans

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Ekiti State Government on Tuesday issued a 15-day ultimatum to nine micro finance banks to recover the Micro, Small and Medium Enterprises (MSME) loans disbursed to their customers across the state.

The government gave the ultimatum in a statement in Ado-Ekiti, signed by the Commissioner for Finance and Economic Development, Chief Toyin Ojo.

The banks were said to be involved in the disbursement of the CBN’s Special Purpose Vehicle on SME Micro Loan to various beneficiaries.

The banks are Consistent Trust, Ijesa-Isu Ekiti; EK Reliance, Ikole Ekiti; Omiye Micro Finance Bank, Ilupeju Ekiti; Transwealth Micro Finnce Bank, Ado Ekiti; Sunbeam Micro finance, Efon-Alaaye and Aramoko Micro Finance Bank, Aramoko Ekiti.

Others are Iyin Ekiti Micro Finance Bank, Iyin Ekiti; Ulayin Bank, Ado Ekiti and Amoye Micro Finance Bank, Ikere Ekiti.

According to the statement, the recovery method was in line with the memorandum of understanding signed by the management of the banks.

The statement added that the bank should ensure that the loan beneficiaries paid back or be ready to be sanctioned according to the dictates of the law.

The Commissioner for Finance and Economic Development, Chief Toyin Ojo, is also the Chairman of the Recovery Team.

Ojo warned, in the statement, that all the affected banks must recover the loans they disbursed and remit same to specified account of the government by the end of March, 2017.

He emphasised that all undisbursed money from the first tranche, still with the finance banks, should be paid back into the designated account within 24 hours.

The commissioner added that defaulting banks would also not be allowed to participate in further disbursement of the second tranche of the loan.

Ojo, therefore, enjoined beneficiaries of the loan to live up to their responsibilities and pay up.

He added that government’s gesture should not be misconstrued as a national cake that would not be paid back.

Ojo warned that failure to repay the loan would deprive other potential beneficiaries from enjoying the facility.

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