₦airaland Forum

That's the irony of life.

PassingShot:
Without needing to go back and forth, the only parameter that settles your concern is the debt to GDP ratio. Is our debt profile at 14% of GDP too high or what? What is your point exactly. How the loans will be financed is clearly stated in the budget, yet you come up with question as this.

Na wa for you ooo.

Let me ask you something passingshot. If Nigeria is a Plc owned by you, and you find yourself in the present situation we are in now as a country, will you borrow?

PassingShot:
You can't be an economist. If you are one, your lecturers can't be proud of you.

The danger in asking your creditors for one year freeze on your loan lies in the fact that you've sent them a red signal about your inability to pay. Not only them but other potential creditors. As such, it's very difficult for you to get future loans and if you do get them, they come at higher interest rates than the market rate.

Next?

I disagree with you on this. Asking for moratorium doesn't signify potential default. It even means you are a good manager. There are a lot of other ways of analyzing the cash flow of an entity. And your creditors are not robots. In fact, the dwindling oil prices gives us the perfect excuse to request for moratorium. So as an Economist that I believe your lecturers are proud of, you believe we have the financial muscle to add to our existing loan obligation( at an interest) and still be servicing the existing ones (at an interest too). Does it make sense to you? Haba Mr. Economist.

Can someone please explain to me the rationale behind borrowing N2trn to finance budget? As it is, we have outstanding loan obligations to service (N1.8trn budgeted to service such in 2016). Does it not make economic sense to sit and agree with our current lenders to give us one year moratorium on our existing loans, and then we use the N1.8trn we intend to use to service our loans to part finance the capital expenditures.

I am no economist though.

Garba stop barking please. Someone will think you are still in opposition.

Although I never imagined myself taking side with FFK. I believe he has a point here. Can someone please explain to me the rationale behind borrowing N2trn to finance budget? As it is, we have outstanding loan obligations to service (N1trn budgeted to service such in 2016). Does it not make economic sense to sit and agree with our current lenders to give us one year moratorium on our existing loans, and then we use the N1trn we intend to use to service our loans to part finance the capital expenditures?

This mods self. How is this protest massive?