The Bayelsa State House of Assembly has approved the request by the state governor, Hon. Seriake Dickson, to renegotiate the terms and conditions for the repayment of N34.1billion loan to some commercial banks in the state.
The proposed restructuring plan approved by the State House of Assembly involves financial commitments of N24.3billion to Sterling Bank and N9.8billion to Eco Bank Plc.
The Bayelsa State governor, Hon. Seriake Dickson, in the request letter sent to the State House of Assembly, sought permission to restructure the existing loan as part of the strategy to manage the current nationwide financial hardship.
The letter said, “The state government has not taken any loan on its own for which restructuring is needed and the request is not for an authority to obtain any new loan. The resolution is required to enable the state’s financial partners restructure all existing liabilities of the state as part of the strategy to manage the current nationwide financial hardship so as to enable the government continue to meet basic obligations.”
Members of the State House of Assembly, while approving the request, commended the governor for the decision to restructure the payment terms, “since renegotiation is a tool allowed in the financial system to provide reprieve for borrowers.
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