Nigeria Central Bank Reveals $7.5 Bln Loan from JP Morgan, Goldman Sachs
Nigeria’s central bank has reported a $7.5 billion loan from U.S. banks JP Morgan and Goldman Sachs in financial statements published for the first time since 2015, sending the country’s international bonds tumbling on Friday.
Nigeria’s government has had to seek overdrafts from the central bank to plug a widening deficit amid wide-scale theft in the oil industry, and the large foreign loans could add to the central bank’s burden.
The deal, which the central bank said meant it received cash of $7 billion from JP Morgan and $500 million from Goldman Sachs “in exchange for its securities to be held for collateral”, is first mentioned in the bank’s 2020 financial statements.
The amount is not disclosed until the 2021 and 2022 statements, but no further details are given of the loan agreement’s terms or the pledged “holdings on foreign securities”.
Source: Nasdaq
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