By theG&BJournal
MON, APRIL 13 2020-theG&BJournal-Sources familiar with the move told theG&BJournal that the Federal Government sees the coronavirus (COVID-19) pandemic outbreak as a window of opportunity to make a formal request to creditors to allow the country to defer repayment of loans due to avoid outright default.
Last week it put forward a fresh plan for a$6.9 billion from lenders to ‘’offset COVID-19’’ pandemic and oil price impact, reflecting the strain on the country’s external finances.
With the global COVID-19 pandemic wrecking havoc, the Federal Government’s apparent appetite to borrow indefinitely puts it clearly now at risk of its first loan default since 1999.
Nigeria eventually cleared its books of any Paris Club debt on April 21, 2006, when it made its final payment after the overall country’s debt stock was slashed by as much as $30 billion. Debt relief agreement worth $18 billion was also reached between the country and the Paris Club.
‘’The intensifying external pressures, and the risks of disruptive macroeconomic adjustment, leaves Nigeria with no choice but to go beg for deferment,’’ our sources said.
According to the National Bureau of Statistic, as at 31st December 2019 Nigerian States and Federal debt stocks stood at N27.40 trillion. N9.02 trillion or 31.55% of the debt is external while 67.07% of the debt is domestic.
|twitter:@theGBJournal|email: info@govandbusinessjournal.com.ng|
