Bryan submitted amended bill seeking Senate approval for $60 million revenue anticipation note

Gov. Albert Bryan Jr. submitted amended legislation to the 33rd Legislature on June 22, 2020, seeking approval for a $60 million revenue anticipation note after discussions with financial institutions to finalize loan terms.

According to Government House, the borrowing was intended to supplement government operations amid revenue declines tied to the COVID-19 pandemic.

The Legislature had originally passed a related bill on March 27, 2020, and Bryan signed it into law on April 14, 2020. Government House said that act was repealed and rescinded in full to incorporate the borrowing terms negotiated between the banks and the government.

The amended measure would authorize the use of available public funds to issue revenue anticipation notes for working capital. It also would authorize the governor and the Public Finance Authority to negotiate final borrowing terms, execute related documents and agreements, and pay expenses associated with the borrowing.

Under the proposal, the Virgin Islands Department of Finance would be required to report to the Senate Finance Committee within 15 business days after any draw of principal, including the purpose of the spending and the source of repayment.

The legislation set a maximum interest rate of 6% and capped total principal at $60 million.

Official source: https://www.vi.gov/governor-bryan-submits-amended-legislation-for-senate-to-ok-60-million-revenue-anticipation-note/