The N170 billion loan sought by Governor Peter Mbah of Enugu State to carry out a number of significant projects in the state was approved on Monday by the Enugu State House of Assembly.
The assembly’s speaker, Chief Uche Ugwu, read a letter containing the loan request during an emergency plenary on Monday in Enugu.
The loans, which would come from the Fidelity and Globus banks, would allow the state government to carry out infrastructure projects in the state, according to the Speaker.
According to Ugwu, the loan consists of a N100 billion bank guarantee line (BGL), a N10 billion term loan (TL), a N10 billion over draft facility from the Fidelity Bank, and a N50 billion credit facility from the Globus Bank.
He hinted that the BGL would serve as a guarantee payment for contracts issued to the contractors, China Civil Engineering Construction Company (CCECC) and others for the execution of projects to be undertaken by the state government.
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On the Term loan, the Speaker revealed that the loan had an interest rate of 22 per cent per annum, which is subject to review in line with money market realities, adding that the repayment tenure is 48 months.
Ugwu pointed out that the Over Draft Facility loan would ensure prompt payment of workers’ salaries as well as sorting out other recurrent expenditures and had a repayment tenure of 12 months.
The speaker said the State Executive Council gave approval for the loans on October 6.
Contributing, the Minority leader of the House, Mr Iloabuchi Aniagu, commended the state governor for forwarding the loan request, which he said, was timely.
According to Aniagu, the loans will enable the state government to undertake developmental agenda for the good people of the state.
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