FG Gives Conditions For Payment of Final $2.689bn Paris Club Tranche

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The Federal Government, on Tuesday in Abuja, gave state governments four conditions for accessing the balance $2.689bn of the Paris Club refund which started in November 2016.

In a Hassan Dodo, Director (Information), at the Federal Ministry of Finance, the Federal Government said the amount was arrived at following the reconciliation by the Debt Management Office (DMO), under the supervision of the Finance Ministry.

To benefit from the phased tranches, government of the 36 states are required to pay salary and staff related arrears as a priority; besides committing to the repayment of the Budget Support Loans granted by the Federal Government in 2016. They are also to clear amounts due to the Presidential Fertiliser Initiative, as well as a “commitment to clear matching grants from the Universal Basic Education Commission (UBEC) where some States have available funds which could be used to improve primary education and learning outcomes.”
Clarifying the Paris Club Refund approved for the 36 States of the Federation, the statement “recalled that the issue of Paris Club loan over-deduction had been a long standing dispute between the Federal Government and the State Governments which dated back to the period of 1995 to 2002.

“In response to the dispute, President Muhammadu Buhari directed that the claims of over-deduction should be formally and individually reconciled by the DMO. This reconciliation commenced in November 2016.
“As an interim measure to alleviate the financial challenges of the States during the 2016 recession, the President had approved that fifty percent (50%) of the amounts claimed by States be paid to enable the States clear salary and pension arrears. This was released between 1st December, 2016 and 29th September, 2017. This refund was part of the Government’s fiscal stimulus to ensure the financial health of Sub-National Governments,” the statement added

https://investdata.com.ng/2018/09/fg-gives-conditions-for-payment-of-final-2-689bn-paris-club-tranche/

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