The Federal Government has been making efforts to explain the reasons for its decision to seek foreign loans of three point five billion dollars.
In making the clarifications, the Minister of Finance, KEMI ADEOSUN, said objective is to provide the lowest possible cost of funding for capital projects to stimulate the economy under the 2016 Budget.According to a statement released by her spokesperson, the Minister explained that options with the World Bank and the African Development Bank is because of the possibility of concessional terms, which include low interest, moratorium before repayment and long tenure.KEMI ADEOSUN said the second funding option being explored by government is Export Credit Agencies such as China Exim Bank, which also offer concessional terms for specific capital projects.The Finance Minister said the balance of foreign borrowing required would be raised in the Eurobond market at commercial interest rates.According to her; government intends that the overall cost of funds would be maintained at the lowest possible level, by blending the different sources of funding.
