As an experienced banker and one who is eminently equipped to understand very properly the intricacies of foreign denominated loans in highly volatile economies like Nigeria, that decision was the best for our State.
This facility has to do with the ‘NG-CARES’ PROGRAM. At the point of its implementation, for which Anambra State participated roughly a year, it was supposed to be a grant program. However, on assumption of office by the Solution Governor, he investigated and discovered that it’s actually a long term loan that must be repaid in the same foreign currency, irrespective of the rullng exchange rate at that particular time of it’s crystallisation!
No wonder as a very responsive cum financially sound Governor he has no choice that to save his State from the impending financial earthquake.
It’s important to note that loan facility is only good if it’s repayment structure cum other terms and conditions are properly evaluated and seen to be financially cum economically viable to the borrowers!
It’s important to note that most third world countries as well as most States in the country today are into financial quagmire because of such frivolous foreign burrowing.
It will be interesting to note that there is no free launch in such borrowing, even in our west African Freetown! Every borrowing has a cost, but unplanned foreign debt is an economic mortgage of the State future !
Anambra people should appreciate Mr. GOVERNOR for taking proactive steps to save our future generations from negatively mortgaging their future !
High Chief (Sir)Clem Chukwuka
Omenife Imeobi Ogidi
