Bail out has nothing to do with outstanding debt- Ahmed
- Bukola Adama
- Jul 27, 2015
- 2 min read
Governor Abdulfatah Ahmed of Kwara State has cleared air on the issues of bail out, just as he declared that the 'bail out' had nothing to do with the payment of outstanding debt.
Rather, he explained that the money given to the state was meant for Natural Liquefied and Natural Gas (NNLG) money and not 'bail out' ordinarily according to the governor, the NNLG money should have been kept like before to augment the dwindling federal allocation and settle other financial obligations, but due to the present financial crisis, we have to share it to both state and local governments in ratio of N2.1 and 1.4billions respectively.
On the issue of the bail out, the governor said " 'the bail out' means restructuring of existing loan collected by states by the Federal Government. The arrangement on the bailout is for the Federal Government to stand in for the states that took loan in various Banks where the loans are taken from, so as to make repayment easier for them.
"And the Federal Government did not even promise or plan to take up the responsibility of paying back the money on behalf of those states. So, the idea behind the 'bail out' is for the Federal Government to stand in for the states that took the loans from banks, restructure the payment process and time frame in order to make it easier for those states to pay back. "So, no money given to us by the Federal Government to pay outstanding debts".
Ahmed who wondered why some people would be spreading rumours, described “the architect of those falsehood as ignorant and mischief makers.”
He therefore appealed to Kwarans not to allowed themselves to be used by those he described as mischief makers to use them to achieve their selfish and parochial ambitions.
He debunked the rumour of reducing state workers strengthen as a panacea to survive the current financial crisis but rather said the state was willing to create more jobs for the youth to make useful 2 d society.
“We will continue to initiate people oriented programmes as well as beef up the state internal generated revenue,” he said.
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