Bryan said matching fund securitization transaction was suspended

Gov. Albert Bryan Jr. said on September 28, 2020, that the Internal Revenue Matching Fund securitization transaction authorized under Act No. 8329 and Act No. 8330 had been suspended.

In a statement, Bryan said the decision followed litigation filed in Superior Court before bond pricing and closing, as well as changes made on September 18, 2020, to the ratifying legislation. He said those changes created uncertainties and prevented the government from re-entering the market and closing before the September 29, 2020, sunset date in the authorization.

Bryan said the transaction had been intended to refinance debt and reduce interest costs, including improving cash flow ahead of an $85 million debt-service payment on U.S. Virgin Islands bonds due October 1, 2020. He said that payment would still be made on schedule.

He also said the anticipated savings had been expected to help fund projects in the territory and provide a down payment toward reducing part of the Government Employees’ Retirement System deficit. Bryan said the administration would work with its financial and legal advisers and the Legislature to develop alternative options to seek comparable savings.

Official source: https://www.vi.gov/governor-bryan-issues-statement-on-status-of-securitization-transaction/