US investors to wipe off state’s N123.9b debt profile

The Governor-elect of Cross River State, Ben Ayade has concluded plans with a group of US investors to wipe out the state’s N123.9 billion total debt profile.

The investors arrived in Calabar, the state capital, on Tuesday, April 14, and have been involved in talks with Ayade, The Guardian reports.

The financiers are reportedly expected to invest over $600 million to buy off the state’s debt liability.

“All the core investors that have been talking with me, the whole essence is how we can package our debt and turn it into an asset. I have a motto that every single debt that we’ve got, we’re packaging it for sale and of course the essential element in economics is that if you want to convert a liability to an asset, you have to present the fundamentals to be attractive and exciting,” Professor Ayade said while addressing newsmen on the issue.

“First let me say that I am inheriting a very robust economy. That we owe as a state does not make it bankrupt. You can actually covert a loan to an asset. It all depends on the management style you bring in. Cross River State is indeed a very vibrant economy with very huge natural resources,” he added.

“We are going to do asset assessment to look at the resource base of Cross River state so that we can take off over $600 million loan that is about N120 billion to free us from the burden of running an interest regime of over 26 percent,” the Governor-elect said.

According to Ayade, the investors are financial dealers who hold private equity and are looking for investment opportunities.

Ayade emerged winner of the April 11 elections in the state after contesting on the platform of the Peoples Democratic Party (PDP).