FG To Refinance Domestic Debts Into $3bn Treasury Bills

The Minister of Finance, Mrs Kemi Adeosun, gave the hint while addressing State House Correspondents after the Federal Executive Council (FEC) meeting presided over by Acting President Yemi Osinbajo.

According to her, the approval was derived from a memo her ministry presented to FEC to enable the federal government to restructure its debt portfolio.

She said, “The memo that I presented and was approved by council was part of our efforts to restructure our debt portfolio. We got approval in June that we would restructure our debt profile. We would borrow less in Naira and more in foreign currency because it is cheaper and also because we want to prevent crowding out the private sector.

“We want to create room for the private sector to be able to borrow so they can grow and create jobs. So, as part of that, we sought approval and that was granted for us to refinance treasury bills.

“As treasury bills mature, we will be refinancing them into dollars. Up to $3 billion worth of treasury bills will be refinanced into dollars. As the Naira treasury bills mature, we will be issuing dollar instruments. So, we are not increasing our borrowings; we simply are restructuring. Instead of borrowing naira we are bearing dollars”.