The Rivers State House of Assembly has approved the refinancing of a loan with Guaranty Trust Bank Plc.
The approval followed the Governors request to refinance a loan of N5.9 billion only, currently with Guaranty Trust Bank Plc to Fidelity Bank Plc.
The Governor, Rt. Hon. Chibuike Rotimi Amaechi in a letter sent to the Assembly said that the reason for the transfer is that Fidelity Bank Plc’s rate is favourable and has a longer tenure that would ease the financial burden on the State and improve the fiscal status.
Governor Amaechi said that the State Assembly had earlier approved the loan of N40 billion from Guaranty Trust Bank Plc in 2013 and that the State had successfully repaid N34.1 billion with a current balance of N5.9 billion as at November 9, 2014.
During the ruling, the Speaker Rt. Hon. Otelemaba Amachree noted that there was nothing to debate on since the House had earlier approved the N40 billion adding that the request was timely and would help to improve the financial strength of the State.
Earlier, the leader of the House, Hon. Chidi Lloyd representing Emohua Constituency explained that the House is not approving a new loan for the Governor but the loan had been approved since 2013 by the House.
River State Government Press Release
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