Monday, 19 September 2016

Cut Interest Rates To Help Economy, Adeosun Tells CBN

Adeosun Tells CBN support the naira to attract foreign inflows

Nigeria’s Finance Minister wants the Central Bank to lower interest rates so that the government can borrow domestically to boost an economy dogged by a recession without increasing its debt servicing costs, Kemi Adeosun said on Monday.

Adeosun said she wanted the Central Bank to reconsider a hike to interest rates which it announced at its last meeting in July, to help support the naira and attract foreign inflows in bond and equity markets.

The Central Bank is due to announce its interest rate decision on Tuesday.

Meanwhile, Nigeria has received commitments to its planned $1 billion Eurobond from international investors, which it aims to issue before the end of the year, but pricing will be key Adeosun said.

The West African country is seeking advisers and bookrunners and is currently accepting proposals from international and local banks for the bond sale, reports Reuters.

Standard and Poor on Friday lowered Nigerian sovereign rating to B from B+, owing to marked contraction in oil production, restrictive currency regime, delayed fiscal stimulus.

“We already have quite strong indications and indeed we had some commitments. Even though we weren’t doing a deal we already have commitments to our bond offer, so we are very confident that it is just a question of pricing,” Adeosun said.