The decision was for government to easily service the debts as high cost debts would be counter-productive in view of the nation’s economic realities, Minister of Finance Kemi Adeosun, said while addressing the Senate Committee on Appropriation in Abuja Thursday.

financial-debt“We know that there is a need, because of the budget deficit, to borrow, but what I will like to assure you is that borrowing is going to be responsible as possible,” the minister said, “What we have done is to approach the lowest cost debt providers first.”

“We have secured loan with the China Exim bank at less than two percent,” she said. “We have secured loan facility with World Bank 1.5 percent concessionaire loan with long moratorium period before we have to start repaying and at low interest rate.”

The minister added that the ministry had made some projections around the nation’s revenue beyond the use of the sources of revenue which were oil proceeds, customs and taxes.

She said to fund the 2016 budget, independently generated revenue would be quite significant in financing it. Enditem

Source: Xinhua

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