Etisalat, creditor-banks’ peace meeting deadlocked

Last minutes exchange of briefs between Etisalat and a consortium of banks, which lent it about $1.23 billion in 2013, has led to postponement of a planned parley aimed at resolving the impasse that has been trailing repayment of the loan.

At the instance of the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN), Thursday was billed for resolving the crisis between the creditor-banks and the telco, but a phone call from the banks was said to have gone to the intervening government agencies asking that the meeting be put off till further notice.

The banks’ consultants were quoted as having received a directive from their clients rejecting a proposal from Etisalat to convert about 40 per cent of the loan, about $340 million, into local bonds.

Confirming the postponement, NCC Vice Executive Chairman, Prof. Umar Danbatta, who on Thursday, in Abuja told newsmen of the development, said the meeting might hold any date later.

But one of consultants, Mrs. Rukai Ganiya, said the telco introduced a fresh angle to the issue at hand, adding that a review of the position against an earlier one taken on how to resolve the issue made the meeting impossible.

“The banks are studying the request, which is not actually new to them based on how it is resurfacing as a fresh approach.

“The loan facility cuts across a spectrum of business concerns and negotiation towards its payment should take every interest into consideration.

“Etisalat is asking for us to convert the dollar component to naira, but banks gave them the loan in hard currency,” Ganiya said.

But what is of most concern to observers is that the United Arab Emirate’s Etisalat, the parent company, which owns 45 per cent of Etisalat Nigeria, expected to send a high powered delegation to the aborted meeting was not in Nigeria in that capacity.

Read also: $1.2BN LOAN: Etisalat to know fate March 16

Though this could not be officially confirmed, as the GSM firm refused to offer comment on the issue, a source said a sub- regional manager from UAE was sighted at the corporate headquarters of the company in Victoria Island on Wednesday.

However, some of the banks involved in the loan have declared their exposure to the deal to AMCON.

Among them are Fidelity Bank, which has about $57 million; GTBank with $25.6 million and Access Bank having about $30 million, all yet to be settled by the company.

 

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