GEDA selects Bank of Guam as bond trustee

by Ken Quintanilla

Guam - Although it's Halloween today, the Calvo Administration already has Christmas on their mind. With the release of the University's independent financial and cost-benefit analysis last week, the Guam Economic Development Authority has selected the Bank of Guam as the trustee, depository and paying agent services for the tax refunds bond.

GEDA administrator Karl Pangelinan says selecting a trustee was one of the key pieces of the puzzle before it can sell the bond, telling KUAM News, "The trustee functions are pretty substantial, there are a lot of reporting requirements are due, the trustee holds al of the money and ultimately pays the bond holders, so it's a big piece of the overall financing puzzle. And we were able to assign that, so it's a big check off our list."

 

The UOG analysis was the other key component, finding that a limited obligation bond secured by business privilege taxes is more favorable than a general obligation bond given financial and cost benefit considerations. Now they hope for good news from the ratings agency. "Again, that their assessment of our credit is inline with what we've been talking about with the Legislature," said Pangelinan. "And as we had this thing planned, we had this goal in mind in terms of our desired rating, so we're crossing our fingers that the ratings agency see what we're seeing."

 

Meanwhile, Governor Eddie Calvo is back from visiting some of the busiest cities in Asia. In his Weekly Radio Address today, the island's chief executive spoke about his Christmas wish list to get tax refunds out by Christmas and investors into Guam within the next few months. Responding to skeptics about doing too many things at one time, Calvo says they are moving in the right direction. 

 

"I told them privately that there was no way Christmas would come this year without some improvement that Guamanians will feel to their quality of life. If tax refunds could come out before Christmas...if foreign companies can begin setting up shop and hiring people this year…if government service can get better and more efficient by the end of 2011, then our community will be better for it," he announced.

 

Sometime this week, Pangelinan anticipates word back from the rating agencies regarding Guam's assessment for which he hopes for an investment grade in the 'A' category.