Ecobank is working on a plan to restructure loans to Nigerian states, after putting almost a third of those loans a watch list as the finances of the states grow more precarious, the pan-African lender said on Friday.
Ecobank has loaned $150 million to various Nigerian states. Of that, $45 million was placed on the watch list.
The bank said it was working on remedial action proposed by Nigeria’s Debt Management Office to restructure the debt into a 20-year government bond, it said in a conference call to investors.
Nigeria’s 36 states are in debt to the tune of ₦658 billion ($3.3 billion) and one way out of the crisis would be for banks to extend the maturity of loans made to them as much as 20 years, one of the state governors has said.
Reuters
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