SEC Moves to Stop States’ Clamor for Bonds

 The plans of state governments hurrying to sell bonds before next year’s election are being threatened as the Securities and Exchange Commission tighten the requirements for issuing debt, according to Bloomberg. Federal officials are reluctant to approve sales as the February 2015 voting period approaches, said Ms Arunma Oteh, the Director-General, SEC, in a January 15 interview in Abuja. “As you come close to an election, we become tougher on the requirements for states to come to market,” Oteh . “I don’t know how many of them will cross the hurdle this year.”

‘They may take a more sceptical look at each state’s debt levels and allocations from the Federal Government’ , said Samir Gadio, a London-based emerging-markets strategist at Standard Bank Group Limited. States are planning to pay for upgrades in infrastructure such as roads, while also seeking to boost spending to end power cuts and sustain growth, forecast to be 6.7 per cent this year, according to the World Bank.