Sao Tome and Principe asks Nigeria to extend maturity of US$30 million loan

25 June 2010

Abuja, Nigeria, 25 June – The government of Sao Tome and Principe has asked Nigeria to authorise an increase of the maturity of a US$30 million interest-free loan granted this year from 6 to 30 years, the president of Nigeria said in a letter addressed to his country’s parliament.

According to President Goodluck Jonathan, the request from Sao Tome and Principe to extend the maturity of the loan was due to the conditions of an International Monetary Fund (IMF) programme being applied in the country.

This year, the Nigerian Senate and Executive Council approved an interest-free loan of US$30 million to Sao Tome and Principe with a maturity of 6 years in three installments of US$10 million each.

In the letter addressed to parliament, the Nigerian president said that the first instalment of US$10 million had already been delivered to Sao Tome and Principe although documentation for the loan had yet to be signed by the two governments.

Noting that the Nigeria’s relationship with Sao Tome and Principe was strategic and that the government had already approved the changes to the conditions of the loan, President Jonathan asked parliament to come to the same decision. (macauhub)