NewsExpress advert Yudala banner
DMO ready for the next stage of refinancing domestic debt

By News Express on 09/02/2018

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 216


The Debt Management Office (DMO) on Thursday announced its readiness for the next stage of the refinancing of Nigeria’s domestic debt.

“The planned external financing of USD2.50 billion is for the refinancing of maturing domestic debt obligations of the Federal Government. It is not a new or incremental debt because it will not lead to an increase in the public debt stock.

The purpose is to rebalance the Federal Government’s debt portfolio by increasing the external component while reducing the domestic component in line with Nigeria’s Debt Management Strategy, which has a target of a 40:60 ratio for external to domestic debt from the current position of about 25:75, respectively,” a DMO statement said.

It disclosed that “the proceeds of the planned USD2.50 billion will be converted to Naira and be used to redeem relatively more expensive domestic debt. This is expected to save about N64 billion per annum in interest cost which will help to reduce the Debt Service/Revenue ratio and free up the fiscal space for other priorities of Government.”

In December 2017, the Federal Government redeemed matured Nigerian Treasury Bills (NTBs) with proceeds of USD500 million Eurobonds issued in November 2017. Apart from saving about N17 billion per annum in debt service cost, there was also a significant drop in the Bid Rates at the Auctions of both NTBs and FGN Bonds in December 2017 and January 2018 from a range of 16% to about 13.5%.

This translates to savings for Government on new borrowings, reduction of pressure on lending rates in the economy with positive impact on job creation and poverty reduction.

The debt substitution will also help to lengthen the maturity profile of the portfolio and leave more borrowing space for the private sector to access credit to grow the real sector, including export which will increase the foreign exchange earning capacity of the economy.

Source News Express

Posted 09/02/2018 11:49:34 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

 

You may also like...
Soldiers gun down suicide bomber, foil attack on...

FG seeks $3.5bn emergency loans from World Bank,...

South East Governors vote for economic integration, float...

Road accident claims 30 in Oyo in September...

Delta, Plateau governors floor challengers at election tribunal,...

Senate approves 3 percent VAT deduction to rebuild...

Dickson urges new Bayelsa CP to make the...

IMF cannot dictate to Nigeria on naira value...

No going back on Biafra, say Indigenous People...

SEEFOR trains 12,000 Delta youths

FG reviews trade, investment policies

NPA directs road contractor to improve performance

 

Latest News Randy pastor murders 3 church members in desperate bid to cover up sexcapades 12 graduates get N2.4m Shell grant US Governor charged over nude photo El-Rufai slams N2bn suit on Senator Shehu Sani 3 herdsmen jailed in Benue for open grazing Missing Yobe schoolgirls: FG begs for more time Kaduna teachers get 32.5 per cent salary increase Those behind Bishop Okpalaeke’s resignation do not know God — Archbishop Opukiri FG pledges to establish science parks in universities INEC, Prisons Service move to ensure prisoners vote in 2019 Sequence of elections: Ebonyi PDP backs NASS Firm unveils the first city centre conference for men in Africa

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (326,573 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (318,371 views) Shameless Genevieve Nnaji exposes breasts in public (255,136 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (209,270 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (194,933 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (187,976 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (163,709 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (146,960 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (140,543 views) Lagos plane crash: Journalist releases victims’ names (129,766 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (128,337 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (123,311 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (34) Business (2,904) Business Verdict (34) Columnists (805) Complaints & Requests (94) Enterprise & Opportunities (203) Entertainment (446) Features (549) Global Business Monitor (226) International (1,801) Interviews (143) Live Commentary (28) Love Matters (105) News (33,070) Opinion (884) Pidgin (10) Politics (4,520) Religion (684) Sports (1,440) Stock Watch (28) AMA & Al Jazeera Global Update

 

 

Football president George Weah puts Liberian army to the test

 

APO Group Partner

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement