Governor Douye Diri of Bayelsa State Wednesday said that it has become increasingly difficult for the state government to fulfil its debt obligations adding that the debt burden was due to the increasing demands on limited resources and huge burden of inherited debts from previous administrations.
The state governor therefore received the approval of the Bayelsa House of Assembly to restructure the state’s commercial debts with some banks, to ease the state’s monthly debt servicing obligations.
Diri had in September 2020 secured the approval of the Bayelsa House of Assembly to obtain a N17 billion loan from multiple sources.
The state Assembly had, on resumption from its recess on Wednesday approved the request by Diri to restructure existing loans with commercial banks.
The governor had stated in a letter to the Assembly, read on the floor of the House by the Clerk of the Assembly, Edward Owudogu, that the restructuring of the facility would extend the tenors of the loans, thereby freeing up funds for critical developmental projects.
The governor further explained that the approval of the house was necessary to enable the government to renegotiate the tenor and rates of existing commercial banks’ loans, for more favourable monthly repayments.
Tare Porri, Chairman, House Committee on Information and Orientation, said that the House approved the request, to enable the state to meet its developmental target.