The Kwara State Commissioner for Finance, Mr. Demola Banu, has said the state does not owe the Asset Management Corporation of Nigeria.

AMCON had early last year advised banks to stop advancing loans and other credit facilities to the state.

But Banu, in an interview with PUNCH correspondent in Ilorin on Tuesday, said the state government had amicably resolved the issue with AMCON.

He added that as a consequence, Kwara State had since July 2013 exited from AMCON's 'unbankable' list.

The commissioner stated that the low financial rating of the state by AMCON was as a result of the meltdown in the capital market.

Banu added that this made the shares, which were used to guarantee loans for civil servants, to depreciate.

According to him, the state had last July accessed a N4bn vehicle loan from First Bank of Nigeria Limited for civil servants.

He said, "We do not owe AMCON. The reference loan was taken on behalf of civil servants to purchase shares and the shares were used to secure the loan.

"You will recall that there was a meltdown in the stock market, which affected the prices of shares. That made the shares to depreciate. But we have been able to resolve that. We settled amicably with AMCON since July 2013 and we have a letter to that effect. I want to reiterate that we do not owe AMCON."

Banu said the state was financially stable, adding that it had been meeting up with its financial responsibilities and obligations.

He said, "We are doing new projects and ensuring that we complete ongoing ones. Kwara is very bankable. In fact, last year, around July, First Bank gave us a N4bn vehicle loan for civil servants.

"If we are unbakable or owing banks, of course no bank will give us such a loan. It shows we are healthy; our financial position and cash flow are very good. We are viable."

According to the commissioner, the state government, despite its small allocation from the Federation Account, has been doing a lot to improve the standard of living of the people.

He added that the government had ensured that the workers were paid on the 25th of every month despite some delays and shortfall in the revenue allocation.