FG converts 11 states’ debt to bond

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The Federal Government bonds has 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.
The disclosure came on Thursday at the National Economic Council chaired by Vice- President Yemi Osinbajo in Abuja.
Governor Abdulfatah Ahmed of Kwara, who briefed journalists at the end of the NEC meeting, 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 …Read More

Source:: New Mail