Abuja - The federal government has faulted claims of an imminent collapse of commercial banks due to their exposure to the power sector, reports ThisDay.
It has therefore urged investors to discountenance such fears as the successor companies of the former Power Holding Company of Nigeria (PHCN) did not borrow directly from the banks for their own books.
Benjamin Dikki, Director-General, Bureau of Public Enterprises (BPE), said the acquiring companies borrowed from the bank based on their cash flows and accounts, adding that they have made adequate provisions to take care of their obligations to their financiers from the outset.
He noted that the fears of the imminent takeover of the successor companies due to their purported inability not to service the loans or about the prospect of stress to the banks due to their exposure to companies were misplaced.
Read more ThisDay.
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