by Mindy Aguon
Guam - Six proposals submitted by underwriter firms have been reviewed and when the Guam Economic Development Authority board meets tomorrow it will receive a recommendation from the staff on what firm is the best and most qualified to help the government pursue more than $340 million later this year. The Calvo Administration has begun the process of going out to obtain a multi-million dollar bond to pay off past due tax refunds and other pending obligations of the government.
GEDA Acting Administrator Karl Pangelinan says once a firm is selected the government will be armed with the experts necessary to explain to lawmakers how this bond will work. A request for authorization to move forward on the $340 million bond is included in the biennial budget for Fiscal Years 2012 and 2013, which is in the hands of the Legislature.
"We'll have our experts in terms of the structure of the financing, how we are gonna access the market, what the expected rating would be for this particular issue so we're pretty confident since we'll be using the business privilege tax that it will be investment grade thus lowering the cost of our borrowing," said Pangelinan.
The GEDA board is scheduled to meet Thursday afternoon at 1:30 to select the underwriter services firm. The Calvo Administration is hoping to obtain the money on the bond market in the fall with hopes to get tax refunds out before Christmas.