Abuja, July 28, 2010 (NAN) The Federal Executive Council (FEC) on Wednesday in Abuja, approved the immediate disbursement of N130 billion low interest loans for the refinancing and restructuring of the `Real Sector’ of the economy.
Minister of State for Information and Communications Labaran Maku made this known to State House correspondents after the weekly FEC meeting, presided by Vice President Namadi Sambo.
He said the amount was part of the N500 billion earmarked by the Central Bank of Nigeria (CBN) for the resuscitation of ailing industries in the country.
He stated that the guidelines for the implementation of the N500 billion had been prepared.
The minister who disclosed that the CBN Governor briefed the Council on the performance of the nation’s economy in the second quarter of 2010, said the economy recorded steady growth during the period under review.
``The Council was informed that there had been a steady growth in GDP, driven largely by the non-oil sector, particularly agriculture, and a moderation in inflation.
``Interbank rates and other money market rates, including lending, also moderated. The foreign exchange was substantially stable, while the recovery in the capital market continued,” he said.
Maku, however, stated that the growth in monetary and private sector credit aggregates remained sluggish.
He said that the CBN Governor also informed the Council that the implementation of the banking sector reform had continued to engender confidence in the system.
He explained that credit by the rescued banks had also continued to grow, while most of them had returned to profitability.
He announced that the modality for putting into operation, the Asset Management Corporation of Nigeria (AMCON), which was signed into law by President Goodluck Jonathan, on July 19, was being finalised.
He expressed optimism that the law would help to further stimulate the recovery of the financial system.
``Without the establishment of AMCON, the rescued banks would have been liquidated, if there are no viable buyers,” he remarked.
The minister observed that the CBN Governor’s presentation to the Council indicated that the economy was on ``sustainable growth, especially the non-oil sectors led by agriculture, retail trade, services and construction.’’
According to him, the Council appreciated the candour and depth of the CBN governor’s report on the economy, especially his determination to press ahead with critical reforms in spite of pressures from vested groups to derail the reforms. (NAN)
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