NLNG Corporate Caring banner FirstGem 3rd anniversay lecture Fidelity bank card banner Emerald Energy Institute Camano banner

DMO ready for the next stage of refinancing domestic debt

By News Express on 09/02/2018

Gmail icon

Views: 808


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

 

 

CLASSIFIED ADS

 

You may also like...
Maiduguri mutineers face jail, dismissal; to be court-martialed...

Suicide bombers kill 19 in Cameroon market, injure...

305 Russian spies unmasked

Breaking: Court clears Buhari to contest presidential election...

Boko Haram infiltration forces Muslim group to stop...

Boy kills friend for liking girlfriend’s Facebook picture...

North-West Governors proffer solution to security challenges

Come and defend yourself, Bayelsa Assembly tells Darlon...

Panic as lion escapes from Kano zoo

LAUTECH lecturers begin two-week warning strike

N1.162bn Fraud: Absence of Dariye’s new counsel stalls...

Fidelity Bank donates computers to school, urges youth...

 

Latest News Quramo Publishing announces 2019 Writers’ Prize shortlist and QFest 2019 Mahama, Muhtar, Others arrive Lagos for Realnews Anniversary Lecture HURIWA condemns kidnapping of Enugu Priest •Demands holistic anti-kidnapping legislations by National, State Assemblies Perm Sec, pregnant wife, 2 kids burnt to death Herdsmen in Imo get 24 hours to leave Wife of Kogi’s deputy governor attacked by thugs Western Sahara: Falana demands suspension of Morocco from AU How sting operation exposed anti-graft agent demanding $20,000 bribe ― Judge Senate disowns Hate Speech Bill Woman drags businessman to court for alleged sodomy Varsity lecturer still missing 3 months after abduction in Kaduna Group urges southeast governors to fulfill electioneering promises

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (563,657 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (452,714 views) Shameless Genevieve Nnaji exposes breasts in public (401,949 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (336,398 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (304,014 views) 10 cars more expensive than Jets (282,108 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (259,084 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (257,304 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (238,837 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (225,231 views) Lagos plane crash: Journalist releases victims’ names (201,682 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (198,306 views)

 

CBN milk production

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (110) Business & Economy (4,576) Business Verdict (86) Columnists (1,144) Complaints & Requests (97) Enterprise & Opportunities (219) Entertainment (704) Features (845) Global Business Monitor (493) ICT Monitor (67) International (4,218) Interview (211) Live Commentary (30) Love Matters (176) Maggie's Blog (486) News (54,097) Opinion (1,420) Pidgin (17) Politics (11,765) Religion (1,121) Sports (2,227) Stock Watch (40) AMA & Al Jazeera Global Update

 

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera