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Infrastructure Bank Records 95 Percent Debt Recovery

May 27, 2014

The Infrastructure Bank Plc yesterday revealed that it has recovered 95 per cent of the N10.5 billion (about $66 million) loans it granted under the first phase of its Public Mass Transit Revolving Fund (PMTF) in the country.

A statement quoted the Managing Director of the Infrastructure Bank, Mr. Adekunle Oyinloye to have said the recovery of the fund grew the mass transit revolving loans base to N15 billion (about $100 million).

Handing over of 65 mass transit buses worth N800 million (about 7.3 million) to beneficiaries in Lagos, Oyinloye said the bank was already working on ways to recover the remaining five per cent through effective risk management system.

He said that the bank, as the fund manager of the PMTF Scheme II, was working in collaboration with the Subsidy Re-investment Empowerment Programme, the financier of the scheme.

Oyinloye admonished beneficiaries of the scheme not to regard the buses as 'political largesse'

He said that the government had to change the five per cent interest rate per annum under the scheme one to zero per cent interest under scheme two. According to him, the bank expects beneficiaries under the scheme two to pay on time because of the zero interest rate.

The bank chief said that the buses were to be fully paid for in order to sustain the scheme, which he described as "laudable and people-oriented."

Oyinloye stressed that it was only through prompt re-payment that more Nigerian road transporters could benefit, warning that the bank would not tolerate any default by beneficiaries.

He said that under the scheme two, every beneficiary had to collaterise their loans to ensure recovery of the facilities.

"There is a risk management framework around the scheme, so every beneficiary has to collaterise what he has taken one way or another.

"If we morally persuade them and it does not work on time, we will consider the next step to get our money back because the money belongs to the federal government.

"It is meant for the masses because for other beneficiaries to benefit, previous beneficiaries must pay back," Oyinloye said.

He said the aim of PMTF was to enhance national transport services through the Federal Government resources under the SURE-P.

"I can tell you that from the offices of LAMATA, Transport Ministry to LAGBUS, everybody is indeed happy with the presence of our buses on the streets.

"I want the public to know that this is not the first time Lagos is benefiting from the scheme. Since 2010 when the first scheme started, a lot of our buses ply Lagos roads," he added.

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Source: AllAfrica

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