DMO Parleys Operators over 2004 Bond
By Uche Obike and Tunyosola Ayansiji
In a bid to further sensitise operators in the finance industry, top management staff of the Debt Management Office (DMO) yesterday began fresh campaigns aimed at smooth marketing of the N40 billion 2nd FGN Bond to be offered in tranches.
In an interactive session with operators yesterday in Lagos, the Director General, DMO, Dr. Mansur Muhtar disclosed that the recent development in the financial system may necessitate challenges in calendar, volume, as stakeholders will be updated expeditiously.
Muhtar disclosed further that the restructuring of Nigerian Treasury Bills (NTBs) into longer tenor securities was planned to continue into 2005 in form of monthly actions, while continuity and increased frequency will facilitate DMO's objective of nurturing a vibrant capital market.
He explained that the long-term perspective should provide opportunities for discerning and creating players, and irrespective of the status of the fiscal balance, DMO would need to access the capital market over the next several years in the bid to restructure existing NTBs into longer tenored securities.
Besides, Muhtar said that DMO was committed to the development of capital infrastructure.
"In order to achieve these objectives, capital market players need to contribute effectively and creatively," he said.
He disclosed further that DMO was seeking to ensure a sound and stable financial system that will enable this bond issue on programme for both the State and the Federal government to be done on sustainable bases that will promote the growth of the Nigerian economy.
"We want to make sure that the States do not engage in reckless activities in this sector which will undermine the credibility and the confidence that investors have on the system. There are series of activities that we have been involved in but once we do that, we plan to convene a major conference or workshop that will put things on the table and we'll agree on guideline," he said.
According to him, "we need to set up a benchmark concerning the DMO. We have restructured our organisation, the DMO, the front middle back up is a stretcher that typical of investment bank and basically the middle office will be focusing on risk and policy."
Although, DMO is restructuring the Treasury Bills, Muhtar said that the Central Bank of Nigeria (CBN) will continue to retain NTBs.
"We have received proposals, frameworks, guidelines and we are also working on guideline for repurchase agreement which has been forwarded to the CBN for review and implementation and we are getting very strong support from CBN in terms of the concession we have been asking," he announced.
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