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Bond float to boost to economy
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Posted on Dec 18 2000
The release of the proceeds from the $60 million bond float undertaken by the CNMI government will help lift the islands’ sagging economy, according to Gov. Pedro P. Tenorio.
“That’s why we are working so hard to float the bond so that we could try to come up with all these CIP programs that we have over here to boost revenues and resources,” he told reporters Friday.
He echoed statements made earlier by several government officials and lawmakers who stressed the money would provide enough catalyst to jump-start the economy again after years of decline.
The bond proceeds have been set aside to match equal amount of federal construction grants under the Capital Improvement Projects/Covenant 702 funding.
Half of the $60 million have been set aside to repay the $30 million owed by the government from Bank of Guam under an interim financing scheme that was approved by lawmakers last year in an effort to immediately avail of the CIP funding.
The Commonwealth Development Authority was authorized to undertake the bond flotation with Paine Webber as underwriter.
The Northern Marianas has been reeling from the effect of the Asian currency crisis that gripped Japan and Korea, the islands’ prime source of tourists, in 1997 and 1998. (BS)
