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Torres considers USDA loan to rejuvenate NMI infrastructure
Gov. Ralph DLG Torres plans to take advantage of the Trump administration’s plan for a national infrastructure program by taking out a low-interest federal loan that would be used to rejuvenate the islands’ infrastructure.
Trump earlier said he would ask Congress to approve a $1-trillion infrastructure bill that could fulfill one of his campaign promises.
Torres met with Republican lawmakers on Tuesday at the Governor’s Office conference room to talk about the U.S. Department of Agriculture’s low-interest loans and federal gran programs.
The USDA’s interest rate on federal loans ranges from 2.67 to 2.8 percent.
“We discussed how we could revitalize our government needs through our infrastructure. It is about time for us to look into addressing our infrastructure,’ said Torres. “[We] want to get a federal loan to fund the infrastructure development that we need. Now is the best time for us to float a loan or a bond that is low in interest. Our economy is growing, so we would able to pay for it, refinance our current bonds and get a low-interest loan.”
Bonds are debt investment where investors borrow money from a certain financial institution for a certain period of time that carries a fixed interest rate. Companies, governments, municipalities, and states use bonds to finance their projects.
Torres said several government agencies, especially the autonomous ones, have bonds. “We’ve never seen this low interest before and we would like to be able to lock on that low interest rates.
“This government right now has bonds from [the Commonwealth Ports Authority], the CNMI Court, Settlement Fund, and we also have CHCC, I think. There are certain departments that have floated bonds,” said Torres. “We want to refinance that through USDA loans, that’s the discussion with the Legislature.”
He also talked with GOP legislators about the need to address land compensation as a whole, including judgments and other settlements to be made by the CNMI government.
