Nigeria in frantic bid to pay N13b

Nigeria and her foreign creditors are to begin talks next Friday, November 20, on how the N13 billion promissory notes recently issued the creditors is to be made.
This follows proposals on such payments already advanced to creditors by Central Bank of Nigeria, CBN. Finance sources said that the terms of payment advanced by Nigeria and which are to be discussed at the meetings include the capitalisation of interests due to such notes by January 5, 1988.
It also includes payment at the current rate of one per cent above the London Interbank Offered Rate, LIBOR.
The new proposal envisage a fixed payment of 1.25% which will be made on April 5, 1988 each of the seven succeeding quarterly days up to and including January 5, 1990.
This, sources said, will be followed by a fixed payment of 2% that will be made on April 5, 1990 and each of the 79 succeeding quarterly days up to and including January 5, 2010.
Finance sources further their said that next week’s meeting will determine whether proposals are acceptable to the holders of the promissory notes or not. If the proposals are acceptable, the sources continued, it will ease off the present pressure on Nigeria foreign exchange facilities and debt problem.
Claims which have been varied with Chase Mahattern are at present under review. Decision on the claims will be taken after the forthcoming meeting, with creditors.
Meanwhile, Central Bank of Nigeria, CBN, has so far rejected a total of ($2.5 billion) N8 billion worth of disputed trade arrears sent in by creditors in the ongoing credit reconciliation.
According to top CBN sources, the credits were mainly those contracted between 1981 and 1983.
Sources said that CBN had successfully disowned the credit because they were not properly documented and no records of such transactions were reflected in the apex bank’s book.