/ 26 July 1999

Nigeria repays massive debt – IMF

OWN CORRESPONDENT, Lagos | Monday 3.15pm.

NIGERIA repaid $770-million of its international debts in the first five months of the year, an official of the International Monetary Fund (IMF) told a Nigerian Monday newspaper.

The debt repayments were made to the World Bank, the Paris Club and other creditors, IMF adviser in Nigeria Hiroyuki Hino told the paper This Day. The amount is part of the $1,5-billion set aside for debt repayments under the 1999 budget drawn up by the last military administration, which left power at the end of May.

The new civilian administration of Olusegun Obasanjo has promised to announce its plans for debt servicing in the upcoming budget, due to be announced this week.

Nigeria owes international creditors around $30-billion.

On Thursday, IMF Deputy Director Alessane Ouattara told President Obasanjo the IMF will provide Nigeria with a one-billion-dollar loan facility if the country can stick to a stand-by agreement for up to 12 months. Part of any stand-by agreement would be a commitment to repay some of the outstanding debts.–AFP