The Debt Management Office in Monday said that the 11 state governments whose commercial debts were recently restructured into bonds would pay an interest rate of 14.83 per cent of the value.
The Director-General, DMO, Dr. Abraham Nwankwo, who stated this in Abuja, said the 14.83 per cent would be paid by the 11 states whose debt had already been restructured in the first phase of the exercise.
The restructuring, according to him, has been effected, noting that with the arrangement, the bond will mature on July 18, 2034.
The first 11 states that got their debts to commercial banks restructured are Osun, N88.6bn; Delta, N69.8bn; Ogun, N55.4bn; Imo, N37.1bn; Ekiti, N18.8bn; Kwara, N15.6bn; and Edo, N11.9bn.
Others are Benue, N10.9bn; Oyo, N9.1bn; Bauchi, N6.5bn and Kogi, N0.81bn.
Nwankwo said that the impact of the debt management operations would imply a drop in the monthly debt service burden by a minimum of 55 per cent and a maximum of 97 per cent among the 11 states.
Similarly, the interest rate savings for the 11 states would now range from three per cent to nine per cent per annum.
He said, “The debt restructuring operation and their total loans to the 11 states, which were restructured, amounted to N322.78bn.
“The restructuring was effected using a reopening of the FGN-Bond issued on July 18, 2014 and maturing on July 18, 2034.
“The pricing was based on the yield to date of the bond at a 30-day average, resulting in a transaction yield of 14.83 per cent.”
He explained that the debt restructuring exercise was open to all the 36 states of the federation and the Federal Capital Territory but added that the second phase of the commercial debt restructuring exercise would commence when the remaining 11 states must have completed the reconciliation of their loans with their respective banks.


Source: http://www.punchng.com/business/business-economy/11-states-to-pay-14-83-interest-on-bond/



cc: lalasticlala

Osun a whooping 88billion.

really? were dem go get d money? wen dere workers are not paid

What are all these billions spent for? Last time i checked most of these states are still owning salaries. I pity my Imolites. Thieving governors enslaving their indigenes.

coolzeal:
What are all these billions spent for? Last time i checked most of these states are still owning salaries. I pity my Imolites. Thieving governors enslaving their indigenes.

these governors are just thieves. Look at the stupid goat in my state Osun with 88bn bond highest on the list with nothing to show for it. Aregbese can't even pay workers salary, stupid goat.

Badosqi:
these governors are just thieves. Look at the stupid goat in my state Osun with 88bn bond highest on the list with nothing to show for it. Aregbese can't even pay workers salary, stupid goat.

bro aregbe is doing great job here oooooo we just av to be praying for him to discharge his duties accordingly.

Johnnyessence:
bro aregbe is doing great job here oooooo we just av to be praying for him to discharge his duties accordingly.

johnny quick to defend his pay master again. Where is the result of the bond? Opon Imo- opon ofo abi? Oyes, omeal abi the abandoned airport/ other project. Do you even live in Osun?


Cc: lalasticlala

At 14.83%?! Very ridiculous. Anyway CBN is particularly interested in some banks.

Useless govs just enriching themselves.