By Seun Aweda
LEGISREPORTS NG – The Enugu State House of Assembly Tuesday approved a N14.2 billion Naira loan request by Governor Ifeanyi Ugwuanyi.
The loan according to the state government is to enable the government offset outstanding salaries, pensions as well as enable it embark on development and infrastructural projects.
A breakdown of the approved loan includes: N4.207 billion for the arrears of salaries and pensions and N10 billion for development and infrastructural projects.
The House in its resolution averred that the loan request was granted because the repayment period was spread for a twenty year period.
“The loan carries a single digit interest rate of 9 per cent and tenure of 20 years repayment period, and it is cheap and convenient.
“Enugu State had earlier applied for the restructuring of its Commercial Bank loan of N6,413,942,870.84 as at June, 2015 and when this is approved, the monthly repayment will be reduced as the tenure of the loans will be extended over 20 years, thereby leaving reasonable balance monthly for the state to operate, and as such, the repayment of this bailout can still be accommodated,” the House stated.
Post from Legis Reports Ng