States Will Soon Receive N300billion Presidential Intervention Fund – by VicePrisident Osinbajo
Laolu Akande, Senior Special Assistant on Media and
Publicity to Vice President, Yemi Osinbajo has
disclosed that the N300billion Presidential
Intervention Fund will soon be made available to
states.
Read statement below:
STATES TO START DRAWING FROM N300B
PRESIDENTIAL SPECIAL INTERVENTION SOON-
PRESIDENCY
*Details of Debt Relief Program kicks off in few weeks
The implementation of a three-pronged financial
intervention of President Muhammadu Buhari to
assuage workers plight and support the states is now
in progress.
Specifically, state governments will start benefiting
from the special intervention fund of between N250B
to N300B in a matter of weeks.
Currently, planning meetings are being held between
members of the Federation Account Allocation
Committee, FAAC and CBN, on the one hand, and
also between CBN and commercial banks on the
other hand, regarding details of the special
intervention fund and the debt relief program of the
President for the states.
Such meetings are reviewing loan profiles of the
states, issues around restructuring of existing loans
including time span, and reconciling the figures.
Already, it has been agreed that existing state loans
be restructured for 20 years, and regarding the bond
option, the rates to be applied would be market-
based but with a cap to make it affordable. Within
weeks from now, the states are expected to start
benefiting from this two other parts of the
presidential intervention.
It would be recalled that the details of the
presidential intervention are in three parts:
The sharing of about $2.1B in fresh allocation
between the states and the federal government. The
money was sourced from recent LNG proceeds to the
federation account, and its release okayed by the
president.
A Central Bank-packaged special intervention fund to
the tune of about N250B to N300B that will offer
financing to the states. This would be a soft loan
available to states.
A debt relief program by the Central Bank of Nigeria
and Debt Management Office, DMO, which will help
states convert their commercial bank loans into
bonds, and restructuring such loans by extending
their life span thereby reducing the debt-servicing
expenditures of the states.
Original posted by thrill.xtgem.com
@2015-07-27 19:53 ( 1 comments )
Created at 2015-07-27 13:00:36
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