ETIM ETIM: "Negotiations over the proposed merger of Providus Bank and Unity Bank have been stalled over the huge amount of insider credits owed by the directors of Unity Bank. The exact amount of the loan is not clear, but a well-informed management staff of Unity Bank said ‘’it is not less than N4.8 billion’’. The proposed bank would be known as Providus-Unity Bank and is expected to be one of the largest banks in the country.The directors of Unity Bank are pushing for the debts to be written off, but Providus management and directors are vehemently opposed to such a move, citing regulatory reasons and insisting that the debtors must pay off their obligations before the merger progresses. The standoff is threatening the merger of the two institutions, with only six weeks to the recapitalisation deadline set by the CBN. If the deal succeeds, Providus will automatically become a national bank, upgrading from a regional operator."
Wondering why the merger between Providus bank and Unity bank has stalled? Top executives owe a lot in debt...
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