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Nairaland Forum / Nairaland / General / Politics / FG Converts 11 States’ Bank Debts To Bonds (690 Views)
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FG Converts 11 States’ Bank Debts To Bonds by Pelupelu: 10:36pm On Aug 21, 2015 |
The National Economic Council chaired by Vice-
President Yemi Osinbajo was on Thursday told that
Federal Government bonds had been issued to 14
banks on behalf of 11 state governments as part of
the plan to restructure states’ loans in commercial
banks.
As part of the plan, the Federal Government had
approved the conversion of states’ loans in
commercial banks to Federal Government bonds.
This is in line with the palliatives President
Muhammadu Buhari had approved for state
governments to enable them to meet their
financial obligations.
The 11 states, which are beneficiaries of the FGN
bonds issued to the 14 banks, were among the 22
states who had applied for their commercial loans
to be converted to FG bonds as of August 19.
Four governors, Ibikunle Amosun (Ogun); Willie
Obiano (Anambra); Abdulfatah Ahmed (Kwara);
and Muhammed Badaru (Jigawa), briefed State
House correspondents at the end of the meeting.
The NEC which is chaired by Vice-President has all
state governors as members.
Ahmed said the latest on the terms of restructuring
of states’ indebtedness to commercial banks were
contained in the presentations made to the council
by the Central Bank of Nigeria and the Debt
Management Office.
He said the bonds for the 11 states were issued to
14 banks after they submitted the reconciled
figures and other required documents for the
restructuring.
Ahmed, therefore, urged the remaining 11 states
to quickly put their documentation in place to
ensure that they fitted into the time schedule.
The governor said, “The DG of DMO told the
council that based on the approval of Mr.
President on the plan to restructure bank loans of
states into FG bonds in order to address fiscal
imbalance, 22 states had submitted reports and
applied for restructuring as of August 19.
“The DG also said the DMO had requested the
states to reconcile figures with the banks and had
been jointly authenticated with the banks as of
June 30.
“As of August 14, out of the 22 states that applied,
FG bonds had been issued in respect of the loans
of 11 states.
“The bonds were issued to 14 banks after
submitting the reconciled figures and other
required documents for the restructuring.
“DMO is now reviewing the additional submissions
by states in the second phase of the programme.”
Economic and financial experts said the loan
conversion deal was good for the banks and the
state governments because the bond certificates
issued to the 14 banks on behalf of the 11 states
meant the states were no longer indebted to the
banks.
The Head, Asset Management, Meristem Asset
Management Limited, an investment advisory firm
Mr. Taiwo Yusuf, said, “What the bond certificates
issued to the 14 banks mean is that the states are
no more indebted to the banks. The Federal
Government through the DMO has taken that up.
While I don’t know much about the 14 banks, it can
be inferred that the 14 banks are the lenders the
11 states were exposed to.”
The Head, Research and Investment, Afrinvest
West Africa Limited, Mr. Ayodeji Ebo, said, “It is
good news for the banks considering the
challenging financial situations some of them are
passing through.”
The Federal Government bailout package for the
36 states includes the sharing of about $2.1bn
(N413.7bn) in fresh allocation between the states
and the Federal Government.
Another measure is a CBN-packaged special
intervention fund that offers financing to the
states, ranging from between N250bn and
N300bn.
The third measure is a debt relief programme
proposed by the Debt Management Office which
will help states restructure their commercial loans
currently put at over N660bn and extend the
tenure of the loans to 15 years, thereby reducing
the states’ debt service obligations.
However, Obiano said the Ministry of Finance
reported to the council that the current Excess
Crude Account proceeds stood at $2.207bn as of
August 2015.
He added that the Group Managing Director of the
Nigerian National Petroleum Corporation, Dr.
Emmanuel Kachikwu, also briefed the council on
ongoing reforms in the petroleum industry.
He said Kachikwu told the council that the reforms
would cover aspects of performance management,
transparency and accountability and zero
tolerance for corruption among others.
He said the GMD urged the state governors to
assist in protecting oil and gas infrastructure in
their states.
Amosun on his part told journalists that Governor
Adams Oshiomhole of Edo State presented what
he called a provisional report of the five governors
asked by the council to review the operations and
management of the ECA and the Federation
Account.
He quoted Oshiomhole as reporting that all the
necessary agencies had been invited while two
audit firms had been appointed to find out what
transpired within the last five years.
The governor said the council was expected to
receive the committee’s final report next month.
He explained that no law was violated in
appointing the audit firms since the governors
carrying out the probe needed expertise.
Badaru said the council was also briefed on
developments in the power sector, saying there
had been overall increase in power supply by 29
per cent as of the first six weeks of the present
administration.
He said power generation reached 4,6662MW by
July 29.
The governor also said that the council was
informed that the Transmission Company of
Nigeria’s management contract had been
extended for another year.
He said the council was informed that there was
currently a 45 per cent default rate on payment of
electricity bills by state governments.
Badaru said state governments had therefore
been urged to ensure payments of electricity bills
by their Ministries, Departments and Agencies.
Badaru added that the state governments were
also urged to assist with the provision of security to
reduce vandalism of distribution assets. Source:::::: www.punchng.com/news/fg-converts-11-states-bank-debts-to-bonds/ |
Re: FG Converts 11 States’ Bank Debts To Bonds by ladyF(f): 10:37pm On Aug 21, 2015 |
Very thoughtful.... |
Re: FG Converts 11 States’ Bank Debts To Bonds by faray: 10:37pm On Aug 21, 2015 |
ok |
Re: FG Converts 11 States’ Bank Debts To Bonds by casyrotts(m): 10:39pm On Aug 21, 2015 |
Mtcheew |
Re: FG Converts 11 States’ Bank Debts To Bonds by BeeBeeOoh(m): 10:42pm On Aug 21, 2015 |
[size=32pt]Maka Why??[/size] |
Re: FG Converts 11 States’ Bank Debts To Bonds by sirugos(m): 10:47pm On Aug 21, 2015 |
HOW TO KNOW IF YOUR MOTHER IS A NIGERIAN; . 1) When you say, "Mummy, I'm Sorry!" And she replies, "Sorry for yourself!" . 2) When you ask her where you should drop something and she says, “Drop it on my head." . 3) When she brings food wrapped in a nylon bag from a party. . 4) When you say, ''Mummy, I have fever.” And she replies you, “Why won't you have fever when you press phone every night” . . 5) When you say, “Mummy I took 2nd in my class.” and she replies, “So the person that took first has two heads abi?” . . 6) When she takes the DSTV remote to work, just to punish you. . 7) When you are watching television with her and then she sleeps off and still doesn’t want you to change the channel. . . When you tell her you are going to a friend's place to play and she asks, ''When last did that friend come here to play with you? . . 9) When she asks you if the food she served you is enough, and you reply no, and she says, come and eat own with yours. . 10) When she tells you, if I hear Peem, you will hear Ween. . 11) When she touches hot pot comfortably without a cloth or paper. . 12) When she tells you, ''I didn't kill my mother, so you will not kill me''. . 13) When she calls you from your room upstairs and then sends you back upstairs to bring her purse. . 14) When you ask her to refund the money you borrowed her and she tells you, "All the food you have been eating in the house nko? Which money did you think was used in buying them?'' Our Mothers are wonderful . |
Re: FG Converts 11 States’ Bank Debts To Bonds by kahara(m): 11:09pm On Aug 21, 2015 |
FG please come to our rescue in Imo State. The state of the State under Maitumbi Roch-a$$ Okorochance needs urgent conversion if not to bond but at least to something not short of deliverance. The APC is a broom-wielding party but almost all APC-LED States including the Center have not been swept since May 28,2015. Now that we are in the seAson of rain and our national roof is leaking perhaps the Umbrella might be the only answer again. |
Re: FG Converts 11 States’ Bank Debts To Bonds by UnknownT: 11:23pm On Aug 21, 2015 |
And I was skimming through to see if I will see the states that are involved. |
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