The Federal Government’s forbearance package may still be open to stockbrokers affected by margin loans, the Association of Stockbroking Houses has said.

The Chairman, ASHON, Mr. Emeka Madubuike, who spoke to our correspondent on Monday, explained that brokers who were not able to accept the forbearance offer due to one reason or the other might still have the opportunity to do so.

He said, “If anyone was not able to accept the offer within the given timeframe, or if anyone still wants to access the forbearance package, such stockbroking firm should be able to write to the Asset Management Corporation of Nigeria and something could still be done.

“It is true that some stockbroking firms didn’t receive AMCON’s letter on time and all that, so they can approach AMCON and discuss with them; such issues, I believe, will be treated on a case-by-case basis.”

A report on Monday had stated that 54 stockbroking firms had accepted the Federal Government’s forbearance package valued at N8.948bn.

The government, through the Minister of Finance, Dr. Ngozi Okonjo-Iweala, had last December announced a forbearance package of N22.6bn on margin loans for 84 stockbrokers as part of efforts to resuscitate the capital market.

While the forbearance was hailed as a positive move, there were indications that some brokers were not willing to accept the offer due to the conditions attached to it, thus making AMCON to give the 84 stockbroking houses up until the end of January 2013 to either accept or reject the offer.

The report said at the end of January, 54 stockbroking houses with margin loans worth N8.948bn had accepted the package despite the conditions.

The number represents 64 per cent of the stockbroking firms, while 22 others did not respond to the AMCON’s letter. Only six or seven per cent rejected the offer, while two of the stockbroking firms settled their loans.

Madubuike told our correspondent, however, that the issue of the forbearance package was made public as much as possible, and that most of the stockbrokers were aware of it.

Announcing the forbearance package, Okonjo-Iweala had said the bail-out would remove the heavy debt burden and allow the brokers to fully re-enter and re-invest in the market and make it more vibrant.

She had said, “In furtherance of AMCON’s clean-up of the banking sector, it is necessary to wipe off the debt overhang in the capital market as this is dampening market activities.

“But let me state clearly that this forbearance will be accompanied by sanctions to discourage excessive borrowing behaviour by capital market operators in the future.”

Source: Punch (By Udeme Ekwere)