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Nigeria asset management bill passes another hurdle

ABUJA, (Reuters)

Legislation to create a Nigerian asset management company (AMC) to soak up bad bank loans passed a second reading in the Senate on Wednesday, bringing it another step closer to becoming law.

The central bank wants the AMC to soak up bad loans at banks rescued in a $4 billion bailout last year, allowing them to clean up their balance sheets so they can resume lending and making them attractive for new investors to recapitalise.

Central Bank Governor Lamido Sanusi said last week he expected the AMC to be up and running and to have resolved issues with the affected bank by the end of September.

The Senate will now debate the AMC bill at a public hearing before passing it in a final reading.

Any discrepancies with the version to be passed by the House of Representatives will then be resolved before Acting President Goodluck Jonathan can sign the bill into law.