Ogun State Governor Ibikunle Amosun on Saturday denied reports that he said the federal government will write off the bailout fund extended to some states of the federation.
“I was quoted out of context. I never said the federal government was going to write off the bailout fund”, the governor said.
A statement issued by his media aide, Adejuwon Soyinka said, “Contrary to reports in some sections of the media, at no point during the opening session of the state Treasury Board meeting for the year 2016 budget held on Friday, November 20, did the governor categorically state that the federal government was going to write off the bailout debt of states.
“What happened is that the governor, upon being briefed by the Deputy Governor, Mrs. Yetunde Onanuga, who attended the last National Economic Council (NEC) meeting held on November 19, said states of the federation spoke about challenges they were facing in meeting their obligations towards repayment of their rescheduled loans or bailout fund.
“He said in view of this, states requested for some sort of moratorium or outright cancellation of their debts. Governor Amosun never said that the federal government has decided to write off the debt or give any sort of moratorium”.
The statement said Governor Amosun also disclosed how Ogun State is the only state that opted for 10 year repayment plan as opposed to the 20 years that was originally proposed by the federal government.
He assured that his administration intends to fully repay the bailout loan before the expiration of his tenure.
Meanwhile, Governor Amosun has notified the state House of Assembly of his readiness to present the 2016 Appropriation Bill on Tuesday.
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