Seizing an opportunity to save taxpayers millions, General Treasurer Seth Magaziner today announced $7.2 million in savings found by refunding $70 million in state debt to take advantage of more favorable interest rates.
"Rhode Islanders deserve to know that they have an advocate in state government who making sure that public borrowing is done responsibly and affordably," said Treasurer Magaziner. "I created Treasury's Office of Debt Management to make sure we are taking advantage of opportunities to save money and implement responsible borrowing practices throughout the state."
Of the $7.2 million in savings for the state, $3.4 million will be saved in the upcoming fiscal year alone. As the outstanding principal was reduced from $70.4 million to $66.9 million.
In addition to the $67 million in refinancing bonds, the state also successfully sold $91 million of General Obligations bonds for new capital projects approved by voters. This is just the second competitive bond sale the state had held in over a decade, a practice designed to maximize savings for Rhode Islanders. The bonds were ultimately sold at a 2.94% interest rate.
As part of its ongoing commitment to fiscal responsibility and oversight, the Treasurer's office recently completed the State's most comprehensive debt affordability study in history. It was the first update to the State's debt affordability targets since 1999.
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