Bryan proposed matching fund securitization bill and called special session for Aug. 18, 2020

Gov. Albert Bryan Jr. announced on Aug. 11, 2020, that he had proposed the Matching Fund Securitization Act and called the 33rd Legislature into special session for Aug. 18, 2020, to consider the measure.

According to Government House, the bill was intended to refinance existing matching fund debt, return the U.S. Virgin Islands to the bond market for the first time in 11 years, reduce annual debt-service payments and lower overall interest costs on current debt.

The administration said the transaction could provide about $85 million a year in cash flow for each of the first three years and produce $106 million in present-value savings.

Bryan said in his transmittal letter to Senate President Novelle Francis Jr. that, under market conditions at the time, the Virgin Islands Public Finance Authority could not restructure the outstanding matching fund bonds through a traditional refunding structure and achieve the same debt-service savings.

Government House said approval by Aug. 19, 2020, was needed to complete the transaction before the next debt-service due date, and that the debt-service reductions were expected to begin as soon as Oct. 1, 2020.

Bryan said the Legislature would decide how any funds made available by the refinancing would be spent, while identifying the Government Employees' Retirement System as a priority.

Official source: https://www.vi.gov/governor-bryan-proposes-legislation-creating-new-revenue-calls-33rd-legislature-into-special-session-to-take-action/