Manchin said Senate panel would seek Treasury response on backing for territorial bonds

Gov. Albert Bryan Jr. told the Senate Energy and Natural Resources Committee on February 1, 2022, that allowing the U.S. Treasury to back bond offerings from U.S. territories could lower borrowing costs for the Virgin Islands.

During the Washington hearing on the state of the U.S. territories, Committee Chairman Joe Manchin of West Virginia said he would look into the request. Manchin then asked committee members about sending a bipartisan letter to the Treasury Department seeking an explanation for why territorial bonds are not backed by the full faith and credit of the U.S. government.

Bryan said such backing could help the territory refinance debt at lower interest rates and reduce annual debt payments.

In other testimony, Bryan asked Congress to consider waiving local matching requirements tied to federal aid, said federal tax policy treated investment in the territories as foreign investment, and said the closure of the Limetree Bay refinery had cost the Virgin Islands 800 jobs and reduced gross domestic product by $633 million.

Bryan also asked for congressional assistance in working with the Environmental Protection Agency and the territory to allow the refinery to reopen safely.

Official source: https://www.vi.gov/senate-committee-chairman-joe-manchin-offers-assistance-on-governor-bryans-request-to-have-bonds-backed-by-u-s-treasury/