"States suffering from Foreign Debts" - Oyinlola
Repayment of foreign debts owed the London and Paris clubs is weighing down heavily on the finances of some states even after the federal Government has settled the debts.
Osun State Governor, Prince Olagunsoye Oyinlola stated this on Wednesday while inaugurating a ten member committee on the management of the State’s debts.
Prince Oyinlola who is also the Chairman of the committee explained that even though the Federal Government settled both the Paris and London Club debts, the states were still bearing the burdens.
“I wish to recollect that even though the Federal Government settled both the Paris and London Club debts, the State Government is still being made to pay through deductions at source for the financing of the Foreign indebtedness.
“The state government is therefore not totally free from the debt over hang, apart from the multilateral debts which are yet to be settled. I also wish to recollect that most of the debts were incurred between 1982 and 1983 by the government of the old Oyo State”, he said.
He stated that the administration had not borrowed any money to execute any of its programmes and projects since inception except local contractual debts which were inherited from previous administrations.
The governor added that the administration had participated in a number of soft loans as introduced and guaranteed by the Federal Government for the Health system Development, Poverty Reduction and State Action Committee on Aids projects.
While stating that the administration had paid substantially most of the debts including the inherited salaries of workers as well as outstanding gratuities and pensions of retirees, Prince Oyinlola said that most of the debts were incurred between 1982 and 1983 by the government of the old Oyo State.
He, therefore, charged members of the committee to consider and forward relevant debts matters to the State Executive and legislative councils for consideration and approval as well as to monitor the utilization of loans as approved by the State House of Assembly by relevant agencies of Government.
Chief press Secretary to the Governor,
