Virgin Islands In Liquidity Crisis; $11M Shortfall Projected for month

[TexasTowelie]

Finance Commissioner Says Territory In ‘Liquidity Crisis;’ $11 Million Shortfall Projected For This Month Without Line Of Credit

ST. THOMAS — At a third meeting on Thursday Governor Kenneth Mapp held with members of his administration and the territory’s lawmakers — which was held at Government House here as a third effort by the governor to once more update senators on the dire state of the territory’s finances, as well as an attempt to convince lawmakers to pass his sin tax measure or something comparable — Finance Commissioner Valdamier Collens projected a shortfall of $60 million by the end of this fiscal year, starting with an $11 million shortfall at the end of January without a line of credit and working capital from the sale of bonds.

According to Government House, Mr. Collens described the situation as a “liquidity crisis.”

The news follows the downgrading of the territory’s Issuer Default Rating (IDR) and the ratings of the dedicated tax bonds issued by the Public Finance Authority on Tuesday by ratings firm Fitch, with the firm citing its increased concerns about the territory’s liquidity following its difficulty in securing market access for a planned working capital borrowing.

At the meeting, Mr. Mapp laid out to senators what must be done if the territory is to avoid serious austerity measures to maintain normal operations, according to Government House. The territory’s leader has again set forth his five-year economic growth plan, which he says is urgently required if the government is to convince those who invest in government bonds that the territory is serious about finally balancing its persistent, or structural, operating budget deficit.

Read more: http://viconsortium.com/breaking-news/finance-commissioner-says-territory-in-liquidity-crisis-11-million-shortfall-projected-for-this-month/