How FG will finance 2021 budget — Osinbajo | The Nation

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Vice President Yemi Osinbajo on Saturday shed light on the 2021 appropriations, saying the Federal Government would finance the budget with concessionary loans instead of commercial facilities.

Says no Eurobond, FG prefers concessionary loansHe said concessionary loans attract between 1.5% and 2%, and have a longer tenor than commercial loans.

On the government’s plans to stimulate the economy, especially with the 2021 budget, the Vice President said: “Borrowing is an important part of financing budget. It is not particularly bad. “We are not likely to explore the Eurobond market; we are looking at concessionary financing which has an interest rate of 1.5% to 2% or even less. For 2021, we are looking at concessionary financing.”

Concerning the ESP, Osinbajo said: “I think there is wide variety of measures to stimulate the economy. “We have about 12 states that have given us land. We insist on locally produced materials such that each site will be a place where people are producing.”

 

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