Government makes $85 million debt-service payment on matching fund bonds

The Government of the Virgin Islands made an $85 million debt-service payment on October 1, 2020, to holders of its Internal Revenue Matching Fund bonds, according to a Government House statement.

The payment was made under the bond covenant. Government House said it came less than a week after Gov. Albert Bryan Jr. announced he was suspending plans to pursue a refinancing transaction involving the bonds.

In a statement issued October 1, 2020, Bryan said the proposed transaction would have sought interest savings and would have made the $85 million available for other needs if it had closed before the payment date. He said those funds could have been used for needs including the Government Employees' Retirement System.

Bryan also said senators in the 33rd Legislature who approved authorization for the refinancing had signaled support for appropriating that amount to GERS.

Official source: https://www.vi.gov/administration-makes-85-million-debt-service-payment-on-internal-revenue-matching-fund-bonds/