Bryan, Roach close on $60 million revenue anticipation note

Gov. Albert Bryan Jr. and Lt. Gov. Tregenza Roach closed on a $60 million line of credit with two local banks, Government House said on December 21, 2020.

The borrowing, structured as a revenue anticipation note, was approved by the 33rd Legislature earlier in 2020 to supplement government operations in anticipation of a potential decline in second-quarter fiscal 2021 revenues tied to the Covid-19 pandemic.

According to Government House, the original bill passed the Legislature on March 27, 2020, and Bryan signed it into law on April 14, 2020. That act was later repealed and rescinded in full to incorporate borrowing terms between the banks and the government.

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

The legislation required the Virgin Islands Department of Finance to report to the Senate Finance Committee within 15 business days after any draw of principal, including the purpose of the funds and the source of repayment.

The interest rate on any revenue anticipation notes or bonds was capped at 6%, and the maximum principal amount was capped at $60 million.

Official source: https://www.vi.gov/governor-bryan-lt-governor-roach-close-on-60-million-revenue-anticipation-note/