FG reduces domestic borrowing for corporate entities – DMO

The Debt Management Office (DMO) has said that the Federal Government was reducing its exposure in the domestic market to pave way for borrowings by corporate entities.
The DMO’s Director-General, Patience Oniha, said, in Lagos, that government had reduced its exposure in the bond market for corporate entities to raise funds.
“We are reducing the amount we borrow in the domestic financial market so that there will be space for corporate bodies,’’ Oniha said.
She said that apart from the government’s decision to reduce domestic borrowing, the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE), had issued new guidelines and reduced fees for people to borrow.
Oniha said that apart from issues of infrastructure for trading in fixed income securities, the market regulators had done a lot of ground work to make the market attractive.
She said DMO was a friend of all regulators, noting that they worked in teams and groups to get to “where we are today’’.
“We want to see varieties of products to be traded in the market, apart from government bonds for people to have more varieties of products to trade on.
“We are expecting development in the market; we want to see corporate bodies to raise bonds in the market for people to have more products to buy, apart from the government bonds,’’ Oniha said.
The director-general said that borrowing from the bond market would make books of corporate entities to be balanced instead of concentrating on bank loans.
She said that the fixed income market had grown when compared with what we had 10 years ago.
Oniha said that government expected the fixed income market to develop significantly long time ago.

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