House authorises Gov Ugwuanyi to raise N15 billion fresh loan

Enugu– The Enugu State House of Assembly has
passed an executive bill authorising the Governor
Ifeanyi Ugwaunyi-led state government to raise
internal loans of about N15 billion from the
Capital Market through the Issuance of Securities
in the form of Registered Bonds for Specific
Development Projects Authorised by the State
Executive Council and Matters Connected
Therewith.

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The projects include urban and rural roads as well
as the completion of the New Secretariat
Complex and the Medical Diagnostic Centre
among others.
The bill went through the second and third
reading before it was passed after a debate on
the merits of the bond by members.
Before the passage of the bill, the House had
passed a resolution on a motion brought before it
by the leader of the House, Ikechukwu Ezeugwu
and 22 others.
In his contribution to the bill, Ezeugwu had
explained that the motion was in line with
President Buhari’s approval of the establishment
of a Federally Guaranteed, Conditional Budget
Support Facility, BSF.
“I am pleased to inform to inform you that
President Muhammadu Buhari has approved the
establishment of a Federally Guaranteed,
Conditional Budget Support Facility.
“This will provide financial support to states and
better position them to navigate the present
economic challenges and meet their obligations to
staff, pensioners and other stakeholders,”
Ezeugwu said.
He further said that the bond would be obtained
in three tranches of N1.39 billion for three months
followed by N1.11 billion for nine months.
Approving the bond, the House authorised that its
payment would be by deductions from the
monthly statutory federal allocations accruing to
the state.
“That the House of Assembly hereby authorises
monthly deductions from the monthly statutory
allocations accruing to the state from the
Federation Account into an account(s)
established for the purposes of servicing the
state’s debt obligations under the Note Issue(the
‘Sinking Fund or any other account as may be
designated by the subscriber to cover interest
payments and principal repayments of the Note
and payment of agreed transaction costs and
expenses due from the state,” the House stated.

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