by Sabrina Salas Matanane

Guam - More money for tax refunds and a tuition hike has officially been averted at the University of Guam. According to a press release from the Governor's office the 1993 General Obligation bonds were just refinanced in New York. This refinancing lowered the government's interest rates on its older bonds from 5.40% to 1.69%, without extending the term of the bonds. "I am pleased that the markets have responded so well to my Administration's efforts. With each bond transaction our reputation in the financial markets continues to improve. These savings are essential to my administration's efforts to provide valuable tuition support to UOG students, tax refunds and funding for the Mayor's Council. Many thanks to Speaker Won Pat, Sen. Barnes, and former Sen. Mabini for partnering with us to make this happen. And, of course, to my proven fiscal team for another job well done," said Governor Eddie Baza Calvo. $22.6 million in Business Privilege Tax Bonds, Series 2013 C, were sold to refinance the '93 GO bonds at record low interest rates. On December 30, 2012, Governor Eddie Baza Calvo signed P.L. 31-276 and directed his fiscal team to immediately take this re-financing to market. The Governor's fiscal team was able to successfully sell the bonds and achieve $2.9 million in debt service savings. Additionally, $1.2 million of bond related cash was freed up and will be released to satisfy provisions of P.L. 31-276.