Nigeria bails out airlines
03 / 06 / 2010
NIGERIA has agreed to bail out its struggling airlines with ?500 billion (US$3.3 billion) ‘intervention fund’.
Muhammad Abdullahi, a spokesman for the Central Bank of Nigeria, said the move would allow the heavily in debt airlines to pay off debts to various banks.
“These airlines can now partake from the fund and those that are indebted to banks can refinance their loans and amortise them over a period of 10 to 15 years,” he added.
“This we believe will help put off a feared financial crisis in the aviation industry.”
There are conflicting reports on exactly how bad the country’s aviation industry is doing with some commentators gloomily foreboding the complete collapse of the industry while others denying there is nothing wrong at all.