Blank NEWS Online can report that the Delta state House of Assembly, on Tuesday gave an express approval to the to a N10 Billion Term Loan being sought by the state governor, Senator Dr. Ifeanyi Okowa.
Governor Okowa, who is soliciting for the loan from Zenith Bank Plc, hinted that the new administration in Delta state met a huge bank/capital market debt burden of about N96.62 billion.
This is contained in a letter dated 22nd June 2015 with Ref: GHA.858/73, and titled “Restructuring of Existing Loan Facilities and Offer of N10 Billion Term Loan by Zenith Bank Plc”
The letter which was addressed to the Speaker of the Delta state House of Assembly reads in part:
“On it’s inauguration on May 29, 2015, the new administration in Delta state met a huge bank/capital market debt burden of about N96.62 billion with a scheduled monthly repayment of N4.6 billion, in addition to the monthly repayment of Delta state Infrastructure Development Bond of N50 billion obtained in 2011.
“The state has, therefore, reached an unsustainable level of indebtedness exacerbated by declining oil prices and consequent lowFAAC receipts.
“Constrained by the foregoing and in order to free resources for other development purposes, this administration has resorted to the lead banker, Zenith Bank Plc, which has offered to restructure the state government’s existing loan facilities and that of the House of Assembly as well as to avail the state government a term loan of N10 billion.
“The restructuring of the existing facility and obtaining of N10 billion loan was consented to in principle, subject to the approval of the Honourable House, by His Excellency, the Overnor on 19th of June, 2015.
“The restructuring of the existing facilities and acceptance of the of the N10 billion term loan will mitigate the harsh impact of the liquidity crises, reduce the time lag in the payment of salaries, pensions and overhead costs as well as ensure the take-off of some key projects germane to the agenda of this administration.”
The House however unanimously gave an approval for the loan facility.
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