by crossriverwatch admin
The Cross River State House of Assembly has adopted a seven points resolution authorizing the state government to refinance part of its commercial bank loan through the capital market by the issuance of bonds not exceeding 40 billion naira.
The House also approved the engagement of First Bank of Nigeria Capital Limited as the lead issuing house and the financial adviser to carryout documentation, obtain regulatory approval and sale of bond issues.
The resolution was adopted following a correspondence from the state governor, Senator Liyel Imoke for resolution to enable the state refinance its commercial bank loans and engage issuing houses for that purpose.
The Speaker of the House maintained that the request is not an attempt to re-borrow but to relieve the state of its debt and elongate the repayment period.
He expressed high hopes that the step will go a long way to boost and sustain the economy of the state.
The member representing Boki 2 state constituency, Dr. Jacob Otu Enya, Chairman House Committee on Appropriation, said the floating of the bond will restructure the finances of the state by reducing the interest rate as well as prolong the payment period.
“The approval of the state executive council as the regulatory authority, the state government is authorized to raise that capital to 40 billion naira”, the chairman said.
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