FEC okays $2.5 billion external borrowing for refinancing

Posted By: Augustine Ehikioya, Abuja On: February 7, 2018

The Federal Executive Council (FEC) on Wednesday approved USD2.5 billion Eurobond external borrowing for refinancing.

The Minister of Finance, Kemi Adeosun, disclosed this to State House correspondents at the end of FEC meeting chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.

On the potential savings on the proposed USD2.5 billion refinancing, she said that the estimated proceeds of N762.5 billion will be used to redeem Nigerian Treasury Bills (NTB).

She said “At estimated current NTB rates of 15% (following mop-up operations by the CBN), the savings from the refinancing of N762.5 billion of Domestic Debt using external capital raising is about N64 billion per annum.”



On the impact of the use of the proceeds of the USD500 million issued in November 2017, she said “The proceeds about N162.50 billion were used to redeem NTBs which matured in December 2017.

“The immediate impact was a significant drop in the Bid Rates at the Auctions of both NTBs and FGN Bonds. In December 2017 and January 2018:

“NTBs dropped from about 16% to 13%. FGN Bonds dropped from about 16-16.50% to 13.50%

“This translates to savings for Government on new borrowing while also making the cost of borrowing for the real sector cheaper since the sovereign rate serves as a benchmark for other borrowers,” she added.

http://thenationonlineng.net/fec-okays-2-5-billion-external-borrowing-refinancing-2/

The same FEC headed by the old cow

LORDOFAFONJAS:
The same FEC headed by the old cow

Who is the President of your country?

deji17:


Who is the President of your country?

Malu buhari

LORDOFAFONJAS:

Malu buhari

If your President is Malu, what does that makes you?

Let the debt profile continue to rise... 3rd generation coming will manage to repay.

Useless gonment.

Firefire:
Let the debt profile continue to rise... 3rd generation coming will manage to repay.

Useless gonment.

This is refinancing of existing debts Firefire, not new one. In fact Govt is saving money from borrowing USD to pay off local debt. The gain is in the interest rate of foreign debt which is lower compared to our local debt

deji17:


This is renegotiation of existing debts Firefire, not new one. In fact Govt is saving money from borrowing USD to pay off local debt. The gain is in the interest rate of foreign debt which is lower compared to our local debt

My friend, I am not interested in the long story... this gonment has taken debt that 3rd generation coming will be 'refinancing'.

What a GONMENT!

Firefire:


My friend, I am not interested in the long story... this gonment has taken debt that 3rd generation coming will be 'refinancing'.

What a GONMENT!

You are not interested because of bad belle ... lol

election money

cursedAbiola:
election money

How you take know? You be 'winch', or you follow them do the meeting?

deji17:


You are not interested because of bad belle ... lol

This is nothing but an odious rape of the Treasury with such borrowings and refinancing, which regrettably have no direct positive social impact on the Nigerian people.

'$1bn loan at 7% would require N150bn + 7% to service and repay when Naira exchanged for N150 = $1. Government would, however, require N300bn + 7% to service and repay the same loan when Naira exchange rate is N300=$1; but when the Naira will tumble beyond N365 =$1; government would need over N365bn + 7% to service and repay the same $1bn loan

Hence, external borrowing which would be domiciled in foreign currency is even more volatile considering the exchange rate and the weak status of our Naira.

Firefire:


This is nothing but an odious rape of the Treasury with such borrowings and refinancing, which regrettably have no direct positive social impact on the Nigerian people.

'$1bn loan at 7% would require N150bn + 7% to service and repay when Naira exchanged for N150 = $1. Government would, however, require N300bn + 7% to service and repay the same loan when Naira exchange rate is N300=$1; but when the Naira will tumble beyond N365 =$1; government would need over N365bn + 7% to service and repay the same $1bn loan

The issue is about the interest rate. Govt is getting $USD at the current naira rate and paying off the local debt. Govt plan is to repay through our forex earnings and stability of the Naira. It is a smart move.

deji17:


The issue is about the interest rate. Govt is getting $USD at the current naira rate and paying off the local debt. Govt plan is to repay through our forex earnings and stability of the Naira. It is a smart move.

My friend, I don't want to make any logical reasoning for this government nor their policy.

Just let us...PRAY FOR BUHARI" Psalms 109:8 because of Daniel 5:26-28.

How e take concern me?

Firefire:


My friend, I don't want to make any logical reasoning for this government nor their policy.

Just let us...PRAY FOR BUHARI" Psalms 109:8 because of Daniel 5:26-28.

FireFire, if Buhari finish the Federal road to your village and electricity power improves in your home, you will start praying for him. Na patience you need.
You should start to pray for Buhari using Deuteronomy 28:3.

deji17:


FireFire, if Buhari finish the Federal road to your village and electricity power improves in your home, you will start praying for him. Na patience you need.
You should start to pray for Buhari using Deuteronomy 28:3.

Buhari and Deuteronomy 28:3 have nothing in common.

Please let us continue to...PRAY FOR BUHARI" Psalms 109:8

Shalom!

Firefire:



Buhari and Deuteronomy 28:3 have nothing in common.

Please let us continue to...PRAY FOR BUHARI" Psalms 109:8

Shalom!

Join me in prayer for Buhari - Deuteronomy 28:3

deji17:


Join me in prayer for Buhari - Deuteronomy 28:3

Proverbs 11:21

Firefire:



Proverbs 11:21

Psalm 1:1

deji17:

Psalm 1:1

Wetin do psalm 1:1 ?

deji17:


This is refinancing of existing debts Firefire, not new one. In fact Govt is saving money from borrowing USD to pay off local debt. The gain is in the interest rate of foreign debt which is lower compared to our local debt

why do you even bother to explain this things to them...??...

they only understand okrika and fake products....

and drugs...

Desyner:
Wetin do psalm 1:1 ?

Wetin do am?

what are they refinancing again, why spend such huge funds when people are dying here in nigeria....

These demonic APC govt has borrowed Nigerias future away

RZArecta2:
These demonic APC govt has borrowed Nigerias future away

How much did your saintly GEJ under PDP save and/or borrowed?

Yyeske:
How much did your saintly GEJ under PDP save and/or borrowed?

Google is your friend, don't let Ignoramus be your middle name

We sold treasury bills and cant afford to pay for the proceeds and interest, we then go to borrow dollar denominated currencies just so to cover a wider debt margin on the local treasury bill sold. No one is asking how we are going to pay the $2.5bn

deji17:


This is refinancing of existing debts Firefire, not new one. In fact Govt is saving money from borrowing USD to pay off local debt. The gain is in the interest rate of foreign debt which is lower compared to our local debt

And how do you pay that of the foreign debt if you cant pay your local debts? But have chosen to borrow to pay debts on proceeds of Treasury bills which you sold.

Esseite:


And how do you pay that of the foreign debt if you cant pay your local debts? But have chosen to borrow to pay debts on proceeds of Treasury bills which you sold.

Yyeske:
How much did your saintly GEJ under PDP save and/or borrowed?

and here it is, going back to gej blame game again. I thought gej destroyed nigeria, so why is buhari doing what gej did? He'd supposed to be the president of change.
So if gej borrowed 500gazillion dollars buhari should do the same. Na your type go support evil and then say e go better.

deji17:


The issue is about the interest rate. Govt is getting $USD at the current naira rate and paying off the local debt. Govt plan is to repay through our forex earnings and stability of the Naira. It is a smart move.

so in your head this is a smart move. Are you a zombie?