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: 212


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

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

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

 

You may also like...
Metuh loses bid to stop trial

MASSOB raps Fayose, demands release of Igbo traders...

Army nabs notorious mercenary, 12 other suspected criminals...

INEC in dilemma over Anambra Senatorial re-run poll...

Judge cries out over intimidation, lashes EFCC

EFCC probes Ebonyi ex-Governor over $12m fraud

Ember Months: Imo Govt. tasks road users on...

$15m bribery allegation against Ibori: Contradictions galore in...

CAN raises alarm as Boko Haram targets Christians...

Anambra APC makes U-turn, drops Soludo, Ekwunife from...

RIGHTSView: 2015 guber poll as defining moment for...

Fidel Castro announces impending death in rare speech...

 

Latest News Northern Senators’ Forum sacks Ex-Governor Adamu as Chairman 94 students reported missing after Boko Haram attack on Government Girls Secondary School in Yobe Nigerian bank investors lose N100bn in 2 days How I almost died after giving birth to my daughter — Serena Williams Protests in Ebonyi as gunmen kill ex-Speaker during political rally N650bn debt: DAPPMA gives FG 14-day ultimatum 10 senators face sanctions over elections order We’ll destroy Tel Aviv and kill Israeli Prime Minister if attacked — Iran Senate condemns drug abuse among Nigerian youths •Asks FG to establish rehabilitation centres across the country RRS smashes 6-man criminal syndicate Okonjo-Iweala appointed into Commonwealth high-level group GOC denies involvement in APC Secretariat demolition

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (325,787 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (317,372 views) Shameless Genevieve Nnaji exposes breasts in public (254,023 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (208,431 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (194,490 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (187,347 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (162,908 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (146,231 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (140,162 views) Lagos plane crash: Journalist releases victims’ names (129,239 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (127,774 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (122,928 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (34) Business (2,897) Business Verdict (33) Columnists (803) Complaints & Requests (94) Enterprise & Opportunities (203) Entertainment (446) Features (549) Global Business Monitor (226) International (1,799) Interviews (143) Live Commentary (28) Love Matters (105) News (32,998) Opinion (883) Pidgin (10) Politics (4,510) Religion (680) Sports (1,438) 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