- Says there’s no plan to sell Skye Bank
The Central Bank of Nigeria (CBN) has provided a loan to Skye Bank Plc to boost its liquidity after the lender breached requirements on capital and lending.
The short-term lending facility will allow new management to “ensure that some withdrawals it suffered in the wake of the undue panic of last week do not adversely affect its operations,’’ Isaac Okorafor, a spokesman for the CBN, said in an e-mailed response to questions by Bloomberg
According to Bloomberg in a report monitored by Business247 News Online, the regulator has also issued guarantees to the bank’s depositors and creditors as a demonstration of its health, he said.
It would be recalled that the CBN replaced top managers of Skye Bank earlier this month after it was said to have breached required thresholds for liquidity and non-performing loans.
While the regulator moved to calm markets, saying Skye Bank and the industry remained healthy, the stock plunged to record lows, leading declines among other Nigerian lenders.
The shares rose for the fourth straight day, gaining 9 percent to 85 kobo at 12.05 p.m. in Lagos trading, the best performer on the 171-member Nigerian Stock Exchange All-Share Index.
Almost 53 million shares were traded, more than three times the three-month average. It has declined by 46 percent this year, compared with a 1.8 percent retreat by the Nigerian All Share Index.
The CBN told Bloomberg that it has no plan to sell Skye Bank.
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