Bryan proposed legislation seeking authority to borrow up to $60 million amid COVID-19 downturn

Gov. Albert Bryan Jr. proposed legislation on March 26, 2020, asking the Virgin Islands Legislature to authorize up to $60 million in borrowing to supplement government operations amid an anticipated COVID-19-related economic downturn.

The 33rd Legislature was scheduled to consider the measure during its March 27, 2020 session.

The proposal would authorize the use of available public funds to issue revenue anticipation notes for working capital as the government faced an expected decline in revenue collections tied to the pandemic.

The measure also would authorize the governor to negotiate final terms for approved borrowing vehicles with the Public Finance Authority, execute related documents and agreements, and pay expenses associated with the borrowing.

Under the proposal, the Department of Finance would be required to report to the Senate Finance Committee within 15 business days after any draw on borrowed principal, including the purpose of the spending and the source of repayment.

The proposal capped the maximum principal amount at $60 million and set a maximum interest rate of 6% on any revenue anticipation notes or bonds.

Official source: https://www.vi.gov/governor-bryan-sends-proposed-legislation-requesting-up-to-60-million-to-fight-covid-19/