Louisiana is repaying early the $370 million it borrowed this budget year to keep state agencies paying their bills on time, The Associated Press reports.
The early repayment will save the state $330,000 in interest costs. That’s a minor amount in a multibillion-dollar budget, but officials say it will send strong signals to Wall Street and credit agencies that Louisiana takes care of its debts even amid chronic financial troubles.
“As a banker I’m usually disappointed when people pay off their debt early. When I’m on the other side of the fence, this is great news when you pay off your debt early and save $300,000 in interest. Good sign for Louisiana,” says Republican House Speaker Taylor Barras.
The loan will be paid off in May and June, ahead of the August due date.
Commissioner of Administration Jay Dardenne, Gov. John Bel Edwards’ chief financial adviser, joked about holding a news conference to announce such a small savings, but says the state is “hungry for any bit of good news” as it struggles with continued financial woes.
“This is good news even though in the big scheme of things it’s not a huge amount relative to our budget situation,” Dardenne says. “It’s symbolic in showing our fiscal responsibility to those who are watching us from afar, particularly those on Wall Street who look at our every move.”
