Wednesday 27 July 2011

California Seeks $5B ’Bridge’ Loan to Pay Bills

http://www.bloomberg.com/news/2011-07-26/california-seeks-5-billion-loan-as-states-gird-for-u-s-default.html?cmpid=

California will borrow $5 billion today through a temporary loan as U.S. states make plans to cope with any credit-market disruption should lawmakers fail to raise the federal debt ceiling by the Aug. 2 deadline.

Proceeds from California’s bridge loan will help pay bills until the state can sell cash-flow notes that had been scheduled for late August. New Mexico is asking agencies to complete requests for federal reimbursement by midday July 29 to ensure the it can get repaid, and Maryland was forced to cut $206 million off a planned bond sale as the debt talks dragged on.

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