The Ekiti State House of Assembly has passed a resolution permitting the State Government to convert commercial bank loans to Federal Government Bonds.
This followed a debate during a Tuesday sitting over a letter the Speaker, Kola Oluwawole, said Governor Ayodele Fayose addressed to the Assembly.
According to a statement by the Special Assistant to the Speaker, Mr. Stephen Gbadamosi, Oluwawole also disclosed that the governor had requested for a meeting with the lawmakers on important state matters for Wednesday.
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The Speaker said the letter titled “Restructuring of Commercial Banks’ Loans to Federal Government Bonds,” was seeking the approval of the House, through a resolution, as part of the conditions the government needed to fulfill to partake in the exercise.
“A letter came from the Executive Governor of the State, Mr. Ayodele Fayose, to the lawmakers. The letter is entitled ‘Restructuring of Commercial Banks’ Loans to Federal Government Bonds.’ This will help the government to restore fiscal stability.
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But a resolution of the House is part of the conditions needed to partake of the restructuring,” the statement quoted him as saying.
The statement said the Assembly deliberated extensively over the subject, after which the Leader of House, Business, Akinyele Olatunji, moved a motion for the resolution.
“Part of the issues considered by the House in granting the permission were that, than commercial banks’ loans, bonds have longer time of repayment schedule and that the interest rate is lower.
“Members also pointed out that the interest rate on bonds was lower compared to that of commercial banks’ loans.”
The statement added that lawmakers screened and confirmed a commissioner nominee and former member of the House from Oye constituency 1, Ayodele Michael.
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