elnuevodia.com

FEMA loan to the government remains uncertain

In the case of the Virgin Islands (USVI), FEMA indicated that it granted a financing of $ 202 million for the water and electricity systems of the territory, its central government and two hospitals.

Governor Kenneth Mapp, according to USVI news media, has stated that the financing already approved by FEMA reaches about $ 500 million.

According to Fabian, in the case of the USVI CDLs, the federal Treasury requested a repayment priority on the bonds of the territory, but this did not prosper.

USVI, according to Fabian, had to offer as collateral to the financing the collections of the "gross income tax", which would be equivalent to the Sales and Use Tax (SUT) of Puerto Rico and the collections for matching that it receives through the reimbursement of the rum tax.

In addition, the USVI CDLs have the same payment priority as debt owed by creditors in the territory.

https://www.elnuevodia.com/english/english/nota/femaloantothegovernmentremainsuncertain-2384434/