Senators talk about bond's rating

Guam - At the Guam Legislature, after much debate Senator Ben Pangelinan - who voted for the bond - says he isn't surprised with the rating given the way the bond is structured. And despite the ratings, the Democrat is still skeptical of using the Business Privilege Tax as security on the bond. 

"Well first of all, congratulations, I think that was an achievement," he said. "So the question is what is that going do to the cash flow for the Government of Guam for the other agencies for operation, because you're sequestering that. We just have to now make sure that its cash flow impact doesn't now translate to negative affects on the operations of the Government of Guam." 

  

Pangelinan maintains the contentious debates over the bond were necessary. Minority Leader Senator Frank Blas, Jr. meanwhile who voted in favor of the bond, says he too wasn't surprised by the rating due to the Administration's belt tightening. Like the Calvo Administration, Blas believes the government should have aimed to pay all past due tax refunds but the legislative body decided otherwise.

 

He said, "It was as a result of the deliberative process of this body that it was decided that this was all we can afford and quite honestly at least we got something, and now with the rating and we stay with the plan we'll be able to clear off more of that debt down the road."

Senator Pangelinan meanwhile said the ratings make it easier for him and his colleagues to consider Bill 344, which is currently on session agenda. Adelup however said the bill would raise property taxes 1000%; Governor's chief of staff Frank Arriola is imploring senators to vote down the legislation. Arriola added the legislation would also increase the rent on CLTC leases tenfold.