FOR IMMEDIATE RELEASE
November 16, 2011
The agreement for a $235 M bond that sold on Wall Street today was signed by Governor Eddie Calvo and Attorney General Leonardo Rapadas. The agreement sets in motion the next step for overdue tax refunds to be released by December 5, 2011, along with COLA payments.
“This brings us one step closer to paying tax payers what they are owed and another step closer to stabilizing the government’s finances,” Governor Calvo said. “We have a lot of work ahead but there’s no doubt in my mind that the people of Guam can achieve anything. This bond is proof that we’re on the right course.”
The bond agreement locks the government of Guam into an interest rate of 4.94% for 30 years. The interest on millions of dollars in overdue tax refunds were paid at an average of 6.27% since 1998.
Because the interest rate for tax refunds can escalate to 8% as seen in the past, the administration will continue efforts to ensure that all future refunds are paid in a timely manner. This will lead to our financial stability by paying minimal to zero interest in tax refunds.
This story is developing. Please stay tuned for more information from New York as it becomes available.
