Business

Bailout for Ebonyi, Osun, Niger

In from Ali Smart …
More states including Ebonyi, Osun and Niger have received the much promised bailout by the Central Bank of Nigeria (CBN) Ripples has learnt.
It may be recalled that there was a Presidential directive to the apex bank to bailout cash strapped states with monetary intervention to enable them pay salaries.
Ripples gathered that the CBN made disbursements to Ebonyi, Osun and Niger states earlier in the week even as documentation from other states are being expected at the CBN before the release of their bailout.
A highly placed source, who confided in Ripples who kept the figures released to the states under wraps, however said the bailouts are tailored to the individual needs and the final agreement reached between the states and their banks.
According to the source, the remaining states have not finished with the conditions which include getting the consent of the states executive councils to agree to the bailout and their various legislatures ratifying the decision of the executive to access the bailout.”

Read also: CBN to recover bailout funds from state allocations

Pressed further, the CBN source said each state government is to negotiate an agreeable interest rate with their banks.
He however, assured that the CBN has provided a soft landing for the states to repay the loans in 20 years just like the restructured commercial debts the Debt Management Office (DMO) converted to local bonds to help states reduce their debt-service outflow and free resources for meeting other obligations, particularly, clearance of arrears of salaries and pensions.
Out of the 27 states that applied for the bailout, funds were disbursed to Zamfara and Kwara States that met the requirements as agreed with their respective banks.

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Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

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