Article: Nigeria: Nigeria Vows to Pay Bank Creditors, Prevent Failures.

Byline: babalu03

Nigeria s central bank said it will guarantee the debts of five lenders that were bailed out this month and pledged to prevent other banks from failing.

For all the banks in which the central bank has put in money, so long as we remain apart of those institutions, we will pay all foreign obligations in the event of a default, Lamido Sanusi, who was named central bank governor in June, said at a presentation today in London. We will not allow any bank to fail.

Sanusi fired the chief executive officers of the five banks earlier this month and injected 420 billion naira ($2.73 billion) into the companies, saying they had too many ...

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