BBC NEWS
BBCi CATEGORIES   TV   RADIO   COMMUNICATE   WHERE I LIVE   INDEX    SEARCH 

BBC News UK Edition
 You are in: Business  
News Front Page
World
UK
England
N Ireland
Scotland
Wales
Politics
Business
Market Data
Your Money
E-Commerce
Economy
Companies
Fact Files
Entertainment
Science/Nature
Technology
Health
Education
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
CBBC News
SERVICES
-------------
EDITIONS
Thursday, 28 November, 2002, 17:19 GMT
Nigeria strives to solve debt crisis
President Olusegun Obasanjo
President Obasanjo ended formal talks with the IMF in March
Nigeria is seeking to buy back some of its commercial debts, in an attempt to reduce its overall debt burden.

The country has debts of more than $28bn ($18.02bn) owed to foreign governments grouped together in the Paris Club.

Talks with these lenders to try and reduce the amount owing have stalled over concerns of economic mismanagement.

But Nigeria is now attempting to buy back about $2bn of freely-traded debt owed to commercial investors.

As the commercial debt is trading at well below its original value, the government will only have to pay $470m.

IMF agreement

Francis Beddington from JP Morgan in London told the BBC's World Business Report he believes the move will help Nigeria's economy.

But he also says Nigeria needs to reach an agreement with the International Monetary Fund before things will really take a turn for the better.

"The Paris Club creditors do not restructure or provide debt relief to countries without an IMF agreement," he said.

The price of the Nigerian Par bond rallied on news of the attempted buy-back.

These bonds have been volatile over the past year but have now settled around the minimum price level.

The Nigerian Par bond is described as 'quite a mainstream asset' held by a broad mixture of pension funds, dedicated mutual funds, and some individual investors.

 WATCH/LISTEN
 ON THIS STORY
Francis Beddington, JP Morgan in London
"It is actually quite a mainstream asset...the Nigerian Par bond"
See also:

28 Aug 02 | Business
06 Mar 02 | Business
21 Feb 02 | Business
16 Jan 02 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | World | UK | England | N Ireland | Scotland | Wales |
Politics | Business | Entertainment | Science/Nature | Technology |
Health | Education | Talking Point | Country Profiles | In Depth |
Programmes